Although US wire rod imports were already on track for ample tonnage arriving in Q1 and Q2, import data for the first three weeks of May show an uptick in arrivals that sources say consist of “plenty of positions” coming in at slightly lower prices than current future order offers.
US import license permits as of May 23 total 141,565 mt of wire rod, compared to preliminary census totals of 138,723 mt in April and census totals of 129,109 mt in May 2016. The uptick has largely been attributed to the current AD/CVD investigation into wire rod imports from 10 countries—US wire rod producers filed the initial petition in late March, and sources say there was a distinct increase in import orders in the aftermath, now evident in import arrivals.
Sources also say that US wire rod buyers and traders are concerned about the results of the investigation, considering recent final margins in the rebar trade case were “harsher than expected” and a recent review and subsequent increase of the AD duties against Mexican wire rod producer Deacero, which effectively priced the company out of the US import market.
Adding to concerns is the ongoing Section 232 investigation, which could result in even higher import tariffs for a variety of steel products. Already, US tire manufacturers are requesting an exemption for the specialty wire rod used in tires, claiming the US domestic market cannot satisfy their needs.