Many in the US domestic wire rod market attributed to lack of increased buying activity ahead of this week’s effective $2.50 cwt. ($50/nt or $55/mt) price increase to skepticism at its success. However, sources tell SteelOrbis that while the full increase has not yet absorbed into the market, much more of it has than previously anticipated.
Since Monday, customers have been paying, on average, about $1.50 cwt. ($30/nt or $33/mt) more in the spot market, bringing the range up to $27.50-$28.50 cwt. ($550-570/nt or $606-628/mt) ex-mill. Part of the bullish prospects for wire rod can be attributed to domestic scrap prices settling at higher levels than expected this week, and continuously rising import offers are also bolstering the domestic wire rod prices boost. However, the remaining $1.00 cwt. ($20/nt or $22/mt) of the increase might take a little more time to absorb. Unlike the rebar market, which has swiftly absorbed several price increases in the past month, wire rod still suffers from less than robust demand in the US. Sources say that unless import offers and expectations for scrap in June remain high, mills are likely to find some difficulty in passing through the full wire rod increase.