As expected whenever the overall wire rod market in the US seems to be trending too far downward, mills announced a $1.00 cwt. ($20/nt or $22/mt) transaction price increase this week, effective with shipments as of May 1. However, while the low carbon side of the market is not expected to absorb much, if any, of the increase (the move was more intended to put a bottom on prices), sources tell SteelOrbis that US domestic high carbon wire rod prices will see between $0.25-$0.50 cwt. ($10-$15/nt or $11-$17/mt) of the increase pass through next month. Further, sources expect a small uptick in purchasing activity before the effective date, a trend mills might use to determine how firm to be with the increase.
Until then, spot prices for 1050/1060 grade high carbon wire rod remain in the range of $34.50-$35.50 ($690-$710/nt or $761-$783/mt) ex-mill, whereas 1070/1080 grade prices are still in the range of $37.25-$38.25 cwt. ($745-$765/nt or $821-$843/mt) ex-mill. Demand is steady for both grades, according to sources, but it appears that the uptrend in scrap has more to do with the transaction price increase than demand.