Steelmaker Nucor said January 7 that it will cease production of wire rod at its Connecticut production facility due to “challenging market conditions,” though they will continue to produce wire mesh, bright basic wire and rebar, the company said Tuesday in a letter to its customers.
“After thorough analysis, Nucor has made the decision to cease production of wire rod at Nucor Steel Connecticut,” a company spokesman said. “(We) are forced to take this action due to challenging market conditions, including ongoing and historical surges of wire rod imports from trading partners such as Canada, Greece, Mexico, Poland, and Ukraine.”
Over the next several months the letter stated that the steelmaker will draw down existing stocks of raw material and finished goods, and that all orders currently acknowledged will be honored and shipped from the facility.
“A commercial representative will contact you directly to discuss how Nucor can continue to be a source for your wire rod needs utilizing our steel mills in Darlington, SC, Norfolk, NE, or Kingman, AZ,” the letter stated.
Market contacts told SteelOrbis today that this announcement along with the December closure of a key wire mill facility by Liberty Steel in Peoria, Illinois, could keep wire rod prices high, despite recent low demand from buyers in the US construction industry. Recently, prices have remained little changed ahead of the start of the Spring construction season which will begin with 2025 supply bookings in February.
According to import data from the International Trade Administration, total wire rod imports for 2024 rose 19.2 percent to 987,738.83 metric tons (mt), from the 828,761.44 mt imported in 2023. The US’s top three trading partners for wire rod continue to be Canada, Japan and Brazil.