US import wire rod offers surge upward while traders remain wary

While some in the US import wire rod market wondered if last week’s break in rising offer prices was indicative of the trend’s peak, it appears that Turkish mills believe prices still have room to grow. Offers on the CFR level shot up significantly in the last week, but traders tell SteelOrbis that they are wary about lifting sales prices too far, especially considering they are already close to US domestic spot prices.

As such, offer prices for Turkish wire rod in the US are now ranging from $25.00-$26.00 cwt. ($500-$520/nt or $551-$573/mt) DDP loaded truck in US Gulf ports—reflecting a $2.00 cwt. ($40/nt or $44/mt) jump from last week. However, traders say inquiry activity at those levels is tepid at best. Part of the reason is the aforementioned narrow gulf between import offers and domestic spot prices, while positions at the port also offer a competitive alternative.

Although Turkish wire rod has been arriving at a trickle this month (only 6,721 mt in import permits as of April 26), Ukrainian wire rod—ordered months ago when offers dipped below Turkish offers—has totaled 18,368 mt, giving US customers an array of options other than future orders.