Although import offers for wire rod the US from Turkey maintained an upward trend as of the end of last week, sources say Turkish mills are focusing more on their domestic market and becoming “less aggressive” with booking orders to the US. As such, import offers are negotiable, and even though inquiry activity is quiet, US-based traders are starting to revise their sales prices to reflect the softening trend.
This week, Turkish offers of imported wire rod in the US domestic market now ranging from $23.50-$24.50 cwt. ($470-$490/nt or $517-$540/mt) DDP loaded truck in US Gulf ports, reflecting a decrease of $0.50 cwt. ($10/nt or $11/mt) in the last week. However, there is growing concern in the market that adverse effects of the Section 232 investigation could include wire rod among many other steel products, when initially only products related to “national security” were expected to be involved.
According to a report from CRU, the investigation is directed “more on providing relief to US steelmakers and to providing a platform for future trade negotiations than truly investigating steel imports and national security.” In a blunt assessment, the CRU said “the premise that national security is under threat is false, it is being used as a tool to arrive at a desired outcome,” and as such, the results of the investigation will most likely increase steel prices.