Wire rod prices reach new low, bottom out

Wire rod prices reach new low, bottom out

Import offers for wire rod seem to have bottomed out finally but not before some mesh quality rod orders were fixed slightly under $19.00 cwt. ($418.88/mt) based on FOB loaded truck in US Gulf Ports. This new low represents a $10 /short ton ($11.02/mt) price decrease from SteelOrbis' last report on June 23. The pricing trend is now neutral or slightly up due to strengthening scrap prices. It has been reported that Turkish mills are now offering higher prices although without any sale and most European mills are going for the routine summer shutdown. Within a few weeks, the market will determine if the softness is psychological or a real lack of demand. If there is pent up demand, buyers will start snatching up the last remaining bargains and the prices should improve shortly.