Even though the Jan. 1-effective $2.25 cwt. ($45/nt or $50/mt)
US domestic
wire rod price increase has not been fully absorbed into the market,
US wire rod mills announced another $2.25 cwt. price increase last week, set to be effective with shipments as of Feb. 1. Market sources report that the prospects for this latest increase are not entirely positive, as demand for
wire rod in the
US is still struggling compared to other long products, such as rebar.
In fact,
US domestic rebar’s strong uptrend and successful price increases are cited as reasons behind the
wire rod price increases, although, according to one sources, “the difference in demand between rebar and
wire rod will become very apparent when Feb. 1 rolls around.”
Sources say that some of the increase might absorb in the market, but unless
US domestic scrap prices maintain an uptrend in February (current expectations say it’s likely, but so is a neutral trend), the
wire rod increase “won’t stand a chance.”
For now,
US domestic
wire rod prices are stable on the high end of the spot price range, while the low end of the range has increased by $0.50 cwt. ($10/nt or $11/mt) to reflect fewer dealmaking opportunities for large customers. As such, the new spot range of $28.00-$29.00 cwt. ($560-$580/nt or $615-$637/mt) ex-mill still leaves $0.25 cwt. ($5/nt or $5.50/mt) of the Jan. 1 price increase remaining to be absorbed.