Less than two weeks after announcing a $0.75 cwt. ($15/nt or $17/mt) price increase, US wire rod mills are getting an expectedly “cold” response from customers, decreasing the possibility that much--if any--of the increase will absorb into the market. Although the scrap trend is looking up, demand for wire rod in the US is lackluster as ever, leaving spot prices for US domestic wire rod languishing in the range of $32.50-$33.50 cwt. ($650-$670/nt or $717-$739/mt) ex-mill. However, sources tell SteelOrbis that mills are still pursuing an aggressive strategy with smaller customers, who were already paying at the top end of the aforementioned range.
As for imports, Turkish holidays have quieted the market this week, with traders hearing no new offers for now. However, prices on the CFR end dropped last week, and traders say they are waiting to see how sustainable those lower offers are before decreasing their price range in the US, which is still at $32.00-$33.00 cwt. ($640-$660/nt or $705-$727/mt) DDP loaded truck in US Gulf ports. By next week, if the lower offers from Turkey still remain, US customers will likely be able to book slightly lower than that range.