A boost in US domestic scrap prices this month combined with predictions of another scrap price increase in January has resulted in an optimistic outlook for the US domestic wire rod market—in terms of prices, but not necessarily demand. Sources tell SteelOrbis that “nothing has changed” regarding end-use demand and purchasing activity this month, and the same low-demand environment is expected to continue into the New Year.
Regardless, prices for US domestic wire rod are poised to rise with the $2.25 cwt. ($45/nt or $50/mt) mill price increase effective Jan. 1—even if the full increase isn’t instantly absorbed in the market, spot prices should reflect the full amount by late January/early February, according to sources.
Already, sources report that fewer transactions are happening at the low end of the current spot price range of $26.00-$27.00 cwt. ($520-$540/nt or $571-$593/mt) ex-mill, which is unchanged in the last week