Will trade ruling delay affect US wire rod market?

Wednesday, 18 June 2014 23:46:15 (GMT+3)   |   San Diego
       

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.


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