Even though US domestic wire rod mills were surprisingly successful in pushing through most of their $1.50 cwt. ($33/mt or $30/nt) price increase for February shipments, demand for wire rod is not currently strong enough to withstand the $25-$30/long ton (depending on region) decrease in shredded scrap prices announced this week. In fact, sources tell SteelOrbis that mills are under pressure to decrease wire rod transaction prices by the full $1.50 cwt. for March shipments, even though mills are reportedly trying to avoid giving back their recent price gains. However, even if mills decide to drop wire rod prices by only a portion of the scrap decrease (as is expected for other long products, such as rebar), pressure in the market will likely drag spot prices down further. For now, spot prices still stand at $37.00-$38.00 cwt. ($816-$838/mt or $740-$760/nt) ex-mill--but that level will not last for long.
As for imports, Turkish wire rod prices slipped again in the past week, this time by about $0.50 cwt. ($11/mt or $10/nt). While traders report that Turkish mills are assuring them prices have hit bottom, they nevertheless believe that offer prices will soon decline below the current range of $33.50-$34.50 cwt. ($739-$761/mt or $670-$690/nt) DDP loaded truck in US Gulf ports. Also, sources report that China is once again making overtures to US traders, with offer prices approximately $0.25-$0.50 cwt. ($5.50-$11/mt or $5-$10/nt) above Turkish offers. However, most prices are just in the offering stage, with few concrete transactions reported, so many traders are waiting to see if the offers have any staying power before seriously inquiring.