US wire rod market responds to price increases with a collective shrug

Wednesday, 24 November 2010 02:11:27 (GMT+3)   |  
       

As expected, the recent mill announced increase in transaction prices for US wire rod has not increased spot prices, only protected them from slipping any further.

As SteelOrbis reported last week, domestic wire rod mills followed the modest shredded scrap increase with a $1.00-$1.25 cwt. ($22-$33/mt or $20-$30/nt, depending on the mill) increase in transaction prices, in an attempt to stave off falling spot prices that were getting close to the $30.00 cwt. ($661/mt or $600/nt) ex-mill level.  In that regard, the pricing decision has been successful-the increase is virtually nonexistent, but at least prices have neutralized.  Instead of even attempting to push the increase through, mills have settled on asking for prices within the pre-increase range of $31.50-$32.50 cwt. ($694-$717/mt or $630-$650/nt) ex-mill, with most spot prices falling in the lower end of the range. 

Demand is not necessarily supporting the stabilized spot prices-while automotive demand is chugging along, construction is still dragging.  The near certainty of another scrap increase in December is behind wire rod's tentative uptrend, along with the expectation that despite the November-announced price increase being virtually ignored, mills are nevertheless eyeing another price hike in December.  So far, predictions range from another $1.00-$1.25 cwt.

As for imports, the Turkish market was quiet last week during the Eid al-Adha holiday.  Although the market started off this week strong, higher local prices have not yet translated to import offers.  Therefore, Turkish wire rod offers to the US have not changed in the last week, still offered in the range of $30.50-$31.50 cwt. ($672-$694/mt or $610-$630/nt) duty paid FOB loaded truck in US Gulf ports, but prices are expected to rise by next week.  It should be noted, however, that such prices are still not garnering much interest in the US.


Similar articles

Wire rod prices in Taiwanese domestic market - week 13, 2024

29 Mar | Longs and Billet

US domestic wire rod prices still soft

28 Mar | Longs and Billet

Wire rod consumption in Mexico increases 6.5 percent in January

28 Mar | Steel News

Import longs offers in Romania now attractive, local prices stable

28 Mar | Longs and Billet

UAE-based ESA cuts wire rod prices for April despite better demand

28 Mar | Longs and Billet

Asian wire rod market tumbles amid pessimism in China

28 Mar | Longs and Billet

Turkey seeks to raise rebar export offers, demand mostly seen locally

27 Mar | Longs and Billet

Japanese crude steel output down 3.8 percent in February from January

27 Mar | Steel News

Saudi Arabia’s Hadeed keeps local longs prices stable again for April

26 Mar | Longs and Billet

Local Turkish official domestic wire rod prices follow diverse trends

26 Mar | Longs and Billet