Even though US domestic scrap prices did not settle this month as low as initially predicted, the reprieve from a sharp drop in raw material prices “has not done wire rod any favors,” according to sources. February shredded scrap prices are still down $20-$25/ton from January, which has virtually eliminated US domestic mills’ chance to push through any of the $2.25 cwt. ($45/nt or $50/mt) price increase that was set to go into effect February 1.
Sources tell SteelOrbis the US domestic wire rod is firmly a “buyer’s market,” although demand and buying activity isn’t strong enough for deals to affect the overall spot price range. As of this week, spot prices are still in the range of $28.00-$29.00 cwt. ($560-$580/nt or $615-$637/mt) ex-mill, although sources say transactions on the top end of the range “are few and far between,” indicating that deals on a case-by-case basis could soon become prevalent enough to drag down the overall spot range.