Although transaction prices for US domestic wire rod are set to increase by $2.50 cwt. ($50/nt or $55/mt) starting next week, sources tell SteelOrbis that buying activity is steady, with no indication of increased bookings to get ahead of the price hike. Such market conditions this close to the increase effective date have led some sources to speculate on the success of the increase, especially considering the modest expectations for May scrap prices.
According to sources, mills might find some resistance to the sharp uptick. A small portion of the increase will almost certainly absorb immediately—around $1.00-$1.50 cwt ($20-$30/nt or $22-$33/mt), according to estimates—but the rest of the $2.50 cwt. increase will “take some time,” said one source, “if it goes through at all.” Until then, spot prices are still ranging from $26.00-$27.00 cwt. ($520-$540/nt or $573-$595/mt) ex-mill—unchanged in the last week.