Prospects for the $2.25 cwt. ($45/nt or $50/mt) US domestic wire rod price increase set to go into effect April 1 were dismal enough last week before the latest scrap price predictions started to spread through the market. Now that US domestic shredded scrap prices are expected to drop in April instead of move sideways as predicted earlier this month, sources tell SteelOrbis that the latest wire rod price increase has “less than zero chance” of absorbing into the market.
As it stands, there is still $0.75 cwt. ($15/nt or $18/mt) remaining of the $2.25 cwt. ($45/nt or $50/mt) wire rod price increase that was supposed to take effect March 1. Sources say the primary objective of the April 1 increase was to push through the rest of the March increase, and it appeared to be effective as long as April scrap predictions remained at sideways. Now that a scrap price decrease is likely, sources tell SteelOrbis that last week’s $0.50 cwt. ($10/nt or $11/mt) wire rod spot price increase could mark the last of the March increase to go through.