While offer prices for import wire rod to the US from Turkey and China have not moved in the last week, traders tell SteelOrbis that the trend is nevertheless pointing down and prices could drop as early as next week. As US export scrap prices to Turkey have declined recently, traders expect Turkish wire rod prices to follow--however, orders are still being booked at the current offer price range of $33.75-$34.75 cwt. ($744-$766/mt or $675-$695/nt) DDP loaded truck in US Gulf ports. Chinese wire rod is still a bit cheaper, at $33.50-$34.50 cwt. ($739-$761/mt or $670-$690/nt) DDP loaded truck in US Gulf ports, but some traders say that trust issues with Chinese sources-resulting from a glut of claims filed when Chinese wire rod flowed into the US in 2008--have left them wary of offering too much Chinese product to their customers, and are instead primarily stick-with Turkish sources.
On the domestic front, US mills have not yet made any indication of how they plan to react to the US scrap trend this month, but the consensus is that they will stay quiet, effectively keeping transaction prices neutral. However, there are reports of deals below the general spot range of $36.00-$37.00 cwt. ($794-$816/mt or $720-$740/nt) ex-mill--but they are not prevalent enough to determine the overall market trend, even though demand for wire rod in the US is not particularly strong at the moment.