After the US domestic scrap market exceeded expectations for March with a $30 per ton increase in Midwest shredded prices, US domestic mills across all sectors have reacted with price increases. And while sources within the US domestic wire rod market are not expecting an official price increase in the near-term, the scrap trend has boosted mills’ efforts to push through their $2.25 cwt. ($45/nt or $50/mt) price increase that was supposed to go into effect March 1.
This week, US domestic wire rod spot prices are up another $0.50 cwt. ($10/nt or $11/mt), now ranging from $29.00-$30.00 cwt. ($580-$600/nt or $639-$661/mt) ex-mill. Additionally, while many sources expected that mills would not be able to pass through more than $1.00 cwt. ($20/nt or $22/mt) of the increase, newer expectations are more flexible.
“Will they get all of it? Not likely,” said one source. “But they might get close.” Other sources predict that mills will get around $2.00 cwt. ($40/nt or $44/mt), “but not a penny more.”