Although the supply of Chinese
wire rod available at
US ports is dwindling, the DOC’s decision today to postpone the preliminary ruling in the trade case against Chinese
wire rod producers could still have ramifications on the
US wire rod market. Sources tell SteelOrbis that the longer the delay, the less chance there is of a critical circumstances ruling in the
US petitioners’ favor, as April marked the high point in Chinese import arrivals in the
US. If the ruling doesn’t result in prohibitive margins, Chinese mills are expected to resume their offers to the
US, putting additional pressure on
US domestic prices.
For now, there isn’t much import competition to speak of, considering Turkish
wire rod offers, at $32.00-$33.00 cwt. ($640-$660/nt or $705-$727/mt) DDP loaded truck in
US Gulf ports, are just slightly below
US domestic spot prices of $32.50-$33.50 cwt. ($650-$670/nt or $717-$739/mt) ex-mill. Those prices are already vulnerable to scrap and the summer slow season, which has left many sources wondering why
US wire producers would take the risk of requesting a postponement in the first place.