Since last week, domestic wire rod prices have increased by $20 /nt, with domestic low carbon rod offerings now ranging from $36.00 cwt. to $37.00 cwt. ($794 /mt to $816 /mt or $720 /nt to $740 /nt) FOB mill and high carbon offers ranging from $38.50 cwt. to $39.50 cwt. ($849 /mt to $871 /mt or $770 /nt to $790 /nt) FOB mill. Mesh quality wire rod prices are now in the range of $35.00 cwt. to $36.00 cwt. ($772 /mt to $794 /mt or $700 /nt to $720 /nt) FOB mill.
Larger buyers are seeing slightly lower numbers, although prices are headed up for all buyers -- it is believed that the March increase will fully go through, and more increases are highly likely for April and May shipments.
Although demand is not all that strong, tons are tight. Buyers, especially on the West Coast, are experiencing shortages since they have to rely mostly on domestic mills as imports are more or less non-existent.
Wire drawers are still voicing discontent in regard to the constant price hikes by domestic mills, but mills are backing up their price increases, stating that they are faced with higher raw material costs. Wire drawers feel these increases are excessive and are having trouble passing them along to their customers, especially when end-use demand is a little sluggish.
On the import side, there is little trickling in. Import offers are up by $1.00 cwt. ($22 /mt or $20 /nt) since last week, with mesh quality wire rod offers now ranging from $38.50 cwt. to $39.50 cwt. ($849 /mt to $871 /mt or $770 /nt to $790 /nt) FOB loaded truck, in US Gulf ports. Drawing quality offers are now ranging from $40.25 cwt. to $41.25 cwt. ($887 /mt to $909 /mt or $805 /nt to $825 /nt) FOB, loaded truck, in US Gulf ports.
The import pricing trend is strongly up; however, US wire drawers are resisting the higher pricing levels, perhaps because they are waiting to see how much the domestic rod prices will eventually increase. There are also some spot offers from China available now, though Chinese mills are reluctant to offer much tonnage because of the 15 percent export tax, the weak US dollar, and the logistic and energy issues the country has been experiencing.
According to license data from the US Import Administration, the United States imported 76,421 mt of wire rod in January 2008. The top five exporting countries to the US were: Canada at 41,964 mt, Brazil at 13,052 mt, China at 8,721 mt, Japan at 1,061 mt, and Turkey at 4,727 mt.