Import mesh quality
wire rod offering prices in the US have risen approximately $0.25 cwt.($5.50 /mt or $5 /nt) in the past week, and most market players concur that the pricing trend for import rod is still strongly up.
Import
wire rod offers now range from $25.75 cwt. to $26.75 cwt. ($568 /mt to $590 /mt or $515 /nt to $535 /nt) FOB, loaded truck, in US Gulf ports for mesh quality. Drawing quality
wire rod still ranges from $28.50 cwt. to $29.50 cwt. ($606 /mt to $628 /mt or $550 /nt to $570 /nt) FOB, loaded truck, in US Gulf ports.
The import pricing trend is still up as Chinese mills are raising their prices significantly.
Wire rod demand in
China is improving, so the mills are likely to pass along these increases to US customers. The demand coming from
Europe,
Middle East and other Asian counties is also getting stronger. Most American buyers now have to compete with European buyers for the available export tons. Because the Euro is so much stronger than the US dollar, European prices are higher than those of their American counterparts.
The robust world markets along with the skyrocketing raw material prices will insure that the import
wire rod market stays heated for a while to come.
There has been no news from
China as far as the VAT rebate reduction is concerned. Many had speculated that it would occur March 1, but that day came and went with no announcement. The next rumored date for the possible announcement of the rebate reduction is April 1, but there has still been no real indication from the Chinese government that it will take place on this day or on any day soon.
In other import news this week, the US Department of Commerce (DOC) announced the final result of its administrative review of the antidumping order against carbon and certain alloy steel
wire rod from Trinidad and Tobago. The review covered Mittal Steel Point Lisas Ltd. and its affiliates, Mittal Steel
North America Inc. and Mittal Walker
Wire Inc. during the period of October 1, 2004 through September 30, 2005. The DOC calculated a final weighted-average dumping margin of 0.06 percent, which is de minimis. Mittal's previous dumping duty deposit rate was 4.13 percent. Accordingly, as of March 6, 2007, the dumping duty deposit rate for Mittal Steel Point Lisas and its affiliates will be 0.00 percent. This mill was a major supplier to the US market before the dumping case was filed, but they continued shipping to the US, although with much-reduced quantities. In today's pricing, the duty reduction will mean savings of approximately $20 /nt for Mittal, and therefore, it may help the mill to increase its output to the US.
As for the domestic
wire rod market, the pricing trend is still strongly up. In addition to the domestic mills' announced price increases for March and April, market players speculate that there may be yet another increase tacked on for April due to the astronomical $60-$70 /long ton increase in shredded
scrap seen within the last month. At the very least, the recent raw material price hikes will ensure that the announced $40 /nt ($44 /mt or $2.00 cwt.) increase for April shipments will be accepted by the market.
For now, most domestic
wire rod offers in the market still range from $26.00 cwt. to $27.00 cwt. ($573 /mt to $595 /mt or $520 /nt to $540 /nt) FOB mill for low carbon, and from $28.50 cwt. to $29.50 cwt. ($628 /mt to $650 /mt or $570 /nt to $590 /nt) FOB mill for high carbon.
Wire rod business in the US is still considered to be only “so-so”, as a buyer told SteelOrbis this week.
Wire drawers are still not buying in a major way, as they are still trying to live off their current inventories. Nevertheless,
scrap prices are still on the rise, and sources say that mesh producers are trying to increase their prices - both indications that
wire rod demand too should be improving soon.