While the US domestic wire rod market is still skeptical about the prospects of the $1.50 cwt. ($30/nt or $33/mt) mill price increase effective with shipments as of February 1, sources tell SteelOrbis that many are looking outside the “usual roster” of sources for deals. Specifically, they are looking beyond Turkish imports, which is offering wire rod to the US in the unchanged range of $18.25-$19.25 cwt. ($365-$385/nt or $402-$424/mt) DDP loaded truck in US Gulf ports. Traders say offers from Brazil are comparable to Turkey but subject to negotiation as Brazilian exporters are eager to expand market share in the US. Meanwhile, offers from Ukraine have been heard for about $20/mt less on the CFR level.
Sources tell SteelOrbis that customers are “absolutely” taking these offers into consideration when booking from US domestic mills, whether they actually order imports or not, as leverage against the looming increase effective date. Most in the market believe current spot prices of $25.00-$26.00 cwt. ($500-$520/nt or $551-$573/mt) ex-mill will stay relatively stable through the end of this month, unless mills get aggressive and push for the increase regardless of demand.