Although US-based traders are still waiting for an import wire rod increase on the CFR side from Turkish mills, low US domestic spot prices coupled with traders’ eagerness to book orders has resulted in a drop in the general offer range. Depending on the order size and destination, Turkish wire rod offers in the US are now ranging from $31.00-$32.00 cwt. ($620-$640/nt or $683-$705/mt) DDP loaded truck in US Gulf ports, with a few offers heard booked at slightly below. However, sources tell SteelOrbis that once Turkish mills increase offers, the chances of the increase translating into sales prices in the US will depend on how many orders they are able to book at these lower prices which, so far, is not much.
US domestic spot prices, meanwhile, are still in the range of $32.50-$33.50 cwt. ($650-$670/nt or $717-$739/mt) ex-mill. Sources tell SteelOrbis that US mills are not too concerned with their inability to lift prices, noting a relative lack of serious import competition from Turkish mills and virtually no hope for Chinese wire rod to influence the market after the US DOC’s ruling this week setting preliminary margins at over 110 percent.