With lackluster demand and continuous competition from imports already putting pressure on the US domestic wire rod market, the $15-$20/ton drop in scrap prices this month is “not doing wire rod any favors,” sources say. Mills have been reportedly cutting deals for large customers and attractive orders even before scrap settled late last week, and sources tell SteelOrbis that the drop in raw material costs has spurred several smaller wire buyers to “get aggressive” at the negotiation table.
As such, sources say “no one” is paying over $26.00 cwt. ($520/nt or $572/mt) ex-mill currently, while the lower end of the spot range has dropped to $25.00 cwt. ($500/nt or $550/mt) ex-mill, reflecting an overall $0.25 cwt. ($5/nt or $5.50/mt) shift downward in the US domestic wire rod spot price range. Further downticks in the coming weeks are “likely” but not necessarily expected unless something “drastic” happens with scrap in October.