Demand for import wire rod in the US market is still lackluster as ever, but traders report “additional hesitancy” to book based on uncertainty over the ongoing Section 232 investigation. Even a possible uptrend in the US domestic wire rod market is not doing enough to spur buyers to book overseas, mostly because they are skeptical about how much of the $1.00 cwt. ($20/nt or $22/mt) US domestic wire rod price increase will actually absorb into the market.
Another factor keeping import order books light is an abundance of positions available. According to the latest US import license data, there was 180,762 mt of wire rod import permits recorded in May, reflecting a 12-month high. June import permits appear to be trending much lower, with only 71,681 mt recorded as of June 13. Still, sources tell SteelOrbis that US wire rod buyers who are hesitant to book future orders and risk Section 232 tariffs have an alternative to US domestic product due to the position availability.