SteelOrbis reported last week that US domestic wire rod mills might use the scrap uptrend this month as an excuse to raise prices, and earlier this week Nucor and Gerdau did just that. In letters to customers, the mills (and others who have not released letters yet), said wire rod prices will increase by $1.50 cwt. ($30/nt or $33/mt) effective with shipments as of February 1. With demand levels weak and imports coming in from Turkey at higher levels than last year, sources within the domestic wire rod market are not convinced such a substantial increase will go through. As such, for the next few weeks, spot prices are likely to remain in the range of $25.00-$26.00 cwt. ($500-$520/nt or $551-$573/mt) ex-mill, and if any changes are apparent, it will be the continued erosion of the low end of that range.
Meanwhile, the import wire rod market in the US is still quiet, with offers for Turkish wire rod still in the range of $18.25-$19.25 cwt. ($365-$385/nt or $402-$424/mt) DDP loaded truck in US Gulf ports. While some sources wonder if Turkish mills will see the domestic increase and push up their own offers in turn, traders tell SteelOrbis that offshore mills are aware of the market dynamics in the US and know that if any increase happens, it will have to be small and gradual.