Even though there is a $1.00-$2.00 cwt. ($20-$40/nt or $22-$44/mt) price increase around the corner for US domestic wire rod (effective with shipments as of June 1), the market is still struggling to absorb the remaining $0.50 cwt. ($10/nt or $11/mt) left from the mid-May $2.50 cwt. ($50/nt or $55/mt) price increase. Sources say there is “virtually no chance” prices will rise any further, and June 1 is expected to come and go without the spot range budging.
However, some sources say that mills might make one last push for that half-dollar before the end of this week (ahead of the Memorial Day holiday), even though market factors are working against them. Import offers are still dropping and scrap price predictions for next month are looking soft. As such, there is little chance the current spot range of $28.00-$29.00 cwt. ($560-$580/nt or $617-$639/mt) ex-mill will move in the near-future.