Even though the downward price trend for import wire rod from Turkey has continued this week, sources tell SteelOrbis that order activity has still not picked up. Some buyers are reportedly still waiting for prices to hit bottom, while others simply cannot justify an overseas order in the current environment of low demand. Traders are now offering Turkish wire rod in the range of $27.50-$28.50 cwt. ($550-$570/nt or $606-$628/mt) DDP loaded truck in US Gulf ports, reflecting an approximate $0.50 cwt. ($10/nt or $11/mt) decrease from last week, although traders say the trend will “get worse before it gets better.”
The effect of the import trend on the US domestic wire rod market has also continued, with sources reporting fewer and fewer transactions taking place at the high end of the $32.00-$33.00 cwt. ($640-$660/nt or $705-$728/mt) ex-mill spot range. Weak demand and downtrending scrap prices have given buyers tremendous leverage, but sources say mills are still trying to hold out as long as possible, believing a scrap uptrend will materialize before the year is out.