Another week of neutral pricing for both US domestic and import wire rod offers has solidified the opinion of many in the market that the bottom has been reached, but some sources think prices won't stay put for long. Traders tell SteelOrbis that Turkish mills are eager to firm up wire rod offers to the US, and although they haven't pressed too hard yet, there is an expectation that offers will start to tick up within the next few weeks. Whether any attempt to raise prices will be successful is still a matter of debate, however, with demand for wire rod in the US still slack. Until any movement is apparent, wire rod offers will likely remain in the range of $24.50-$25.50 cwt. ($490-$510/nt or $540-$562/nt) DDP loaded truck in US Gulf ports, unchanged since last week.
Fortunately for US wire rod producers, the margin between US spot prices-still at $26.50-$27.50 cwt. ($530-$550/nt or $584-$606/mt) ex-mill-is nowhere near as wide as other long products, namely rebar. As such, US mills have not had the pressure of import competition bearing down on them-their main obstacle to raising prices is demand. However, as the harsh winter weather that gripped much of the East Coast and Midwest in the early part of this year has started to thaw, the rise in active construction projects will bolster US wire rod mills.