US import wire rod market skeptical of price push

Friday, 06 January 2017 21:53:09 (GMT+3)   |   San Diego
       

Even though demand for import wire rod in the US is no stronger than it was before the holidays, sources tell SteelOrbis that Turkish mills are pushing for slightly higher offer prices in line with rising raw material costs. But the moderate uptick in quotes—reportedly around $5-$10/mt at the CFR level—has not translated into higher offers from US-based traders to their customers. “If the choice is between higher prices or no order at all, they’re choosing to not order—for now, at least” said one trader, who added that the situation could change if US domestic wire rod prices continue to climb.
 
A January 1-effective US domestic wire rod price increase is already absorbing into the market and widening the margin between domestic and import offers, and if it gets any wider, sources say US customers might give imports “another look.”
 
For now, Turkish offers of imported product in the US domestic market are still ranging from $22.00-$23.00 cwt. ($440-$460/nt or $485-$507/mt) DDP loaded truck in US Gulf ports, reflecting no change since late December.

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