Although the US domestic wire rod market is said to be quiet overall, with little to speak of in terms of purchasing activity, sources tell SteelOrbis that within any transactions occurring, buyers currently have the upper hand. Deals have been heard for as much as $1.00 cwt. ($20/nt or $22/mt) under last week’s general spot range, but those are considered “outliers”—not widespread enough to have a significant impact on the range. However, deals of $0.50 cwt. ($10/nt or $11/mt) are common enough to drop the general range down to $26.00-$27.00 cwt. ($520-$540/nt or $573-$595/mt) ex-mill.
In addition to soft scrap prices and lackluster demand, one of the main reasons US wire rod prices have been so flexible lately is the influx of wire rod imports into the market. However, imports slowing down in July compared to June could mean the current flexibility might not last long, especially if the months-long scrap downtrend comes to an end.