Although it’s back to business after the holidays in the US wire rod market, the push to implement the last $0.50 cwt. ($10/nt or $11/mt) price increase from December--let alone push for the $1.25-$1.50 cwt. ($25-$30/nt or $28-$33/mt) price increase for January orders--is still on hold. Sources tell SteelOrbis that mills are contemplating whether it would be worth it to announce yet another increase after scrap settles this month, more as a show of their solid stance toward prices. Shredded scrap prices are set to rise, backed by increasingly harsh storms battering the East Coast and Midwest—other long product prices will undoubtedly rise as well, so wire rod mills are confident they can join in the solidarity. However, the same winter storms that are making scrap collection nearly impossible—and thus prices high—are also halting construction activity across most of the US. Therefore, downticks in demand will have to be weighed against upticks in costs. This week, at least, US domestic spot prices are still in the range of $33.00-$34.00 cwt. ($660-$680/nt or $728-$750/mt) ex-mill.
As for imports, sources say time is running out for US buyers to book Chinese wire rod in the range of $28.50-$29.50 cwt. ($570-$590/nt or $628-$650/mt) DDP loaded truck in US Gulf ports. Rumors of a potential antidumping petition against Chinese mills are growing more pronounced, and a slight rise in prices could take the heat off—at least for a while. Even the slowdown in buying activity from Chinese mills for the Lunar New Year holiday later this month isn’t enough of an incentive to lower prices to generate more orders.