Although scrap prices in the US are strong, demand for wire rod is not robust enough to take advantage of the raw materials trend and support an increase in transaction prices. In fact, sources tell SteelOrbis that US domestic wire rod prices are currently vulnerable to softening. The spot range is unchanged this week at $33.50-$34.50 cwt. ($670-$690/nt or $739-$761/mt) ex-mill, but deals for large orders for up to $1.00 cwt. ($20/nt or $22/mt) less are reportedly on the verge of spreading into the general range. Sources say this situation might spur US wire rod mills to announce a price increase to stop prices from slipping any further.
Imports are also continuing to put pressure on US domestic wire rod prices, with Turkish offers still in the range of $33.50-$34.50 cwt. ($670-$690/nt or $739-$761/mt) DDP loaded truck US Gulf coast ports. However, demand for even imports in the US isn’t enough to garner significant attention, so inquiry activity, according to traders, is lackluster at best.