As the US domestic wire rod market returns from the holidays, purchasing activity has not quite ramped up to “normal” levels, according to sources, but the $2.25 cwt. ($45/nt or $50/mt) price increase—announced last month to be effective as of Jan. 1—has already started making its way into the spot market.
As predicted in our last report before the holidays, the increase is following expectations for a gradual absorption into spot prices, although the amount varies by customer, order size, and region. On average, large orders are paying $1.00 cwt. ($20/nt or $22/mt) above December prices, while smaller tonnage orders are paying up to $2.00 cwt. ($40/nt or $44/mt) above previous price levels.
This means that for now—until the full price increase is absorbed—the US domestic wire rod spot price range has widened to $27.00-$29.00 cwt. ($540-$580/nt or $593-$637/mt) ex-mill, reflecting a $1.00 cwt. increase on the low end and a $2.00 cwt. increase on the high end.