As predicted last week, import wire rod offers from Turkey hit their peak and have already started to drop. Sources tell SteelOrbis that uncertainty in the scrap market and lower Chinese billet prices in Turkey are the primary drivers of the downtrend, but traders also point out lackluster order activity at the high price levels was an incentive to let the offer range fall.
As such, offer prices for import wire rod from Turkey are now in the range of $26.00-$27.00 cwt. ($520-$540/nt or $573-$595/mt) DDP loaded truck in US Gulf ports, reflecting a $0.50 cwt. ($10/nt or $11/mt) decrease since last week. Sources say prices will continue to drop, but likely not as fast as prices ramped up. One reason for the expected “cushioned” fall is the uptrend in US domestic wire rod prices.
A week ago, domestic wire rod mills announced a $2.50 cwt. ($50/nt or $55/mt) increase that has mostly absorbed into the market. This week, mills announced another $1.00-$2.00 cwt. ($20-40/nt or $22-$44/mt) increase, effective June 1, but sources are skeptical about its success.