After the $1.00 cwt. ($20/nt or $22/mt) wire rod price increase announced by mills in May for June shipments failed to live up to expectations, many were surprised that mills not only announced yet another increase for July, but an increase that outpaced its predecessor. The newest increase, announced last week, will try to lift US domestic wire rod prices by $1.50 cwt. ($30/nt or $33/mt), but sources are not optimistic about its prospects. Only about half of the June increase absorbed into the market, and at the very most, the July increase will finish up the job. But another $1.50 cwt., sources say, is “out of the question.” For now, spot prices remain at $27.00-$28.00 cwt. ($540-$560/nt or $595-$617/mt) ex-mill.
As for imports, traders report the apparent uptrend in wire rod prices from Turkey didn’t last long, and they have already seen acceptance for lower offers this week. However, it’s too soon to move sales prices, which are still in the range of $25.50-$26.50 cwt. ($510-$530/nt or $562-$584/mt) DDP loaded truck in US Gulf ports.