After Nucor announced last week that it would be dropping low carbon wire rod prices by $1.50 cwt. ($30/nt or $33/mt) as of September 1 shipments, many in the market expected other mills to fall in line. However, Gerdau Long Steel North America announced a few days later that it would also drop wire rod prices for September—although by only $1.00 cwt. ($20/nt or $22/mt).
The diverging announcements have left many in the market scratching their heads, wondering if Gerdau will relent and offer wire rod closer to Nucor’s price idea. Either way, orders for September shipment are just starting to book so the situation should be clear next week. Until then, spot prices are still in the range of $27.50-$28.00 cwt. ($550-$560/nt or $606-$617/mt) ex-mill.