While US-based traders are holding off from Chinese offers and negotiating a solid starting point for Turkish offers after so many months in the margins, other potential sources for low-carbon wire rod imports to the US have started sending out “feelers” in the market. So far, there haven’t been any firm offers on the table--traders tell SteelOrbis that initial inquiries from Spain and Germany have come back much too expensive, while talks with some Brazilian producers have proved more productive. Until anything concrete happens, US customers are in a holding pattern. Turkish prices are likely to be somewhere in the range of $31.00 cwt. ($620/nt or $683/mt) DDP loaded truck in US Gulf ports, although some sources think they might start at a higher price point so the margin between Turkish import and US domestic prices isn’t too wide.
As for the US domestic market, downtrending scrap sucked away much of US mills’ remaining leverage in the market, and sources say customers are pushing hard to pay less than the current spot range of $34.00-$35.00 cwt. ($680-$700/nt or $750-$772/mt) ex-mill. More and more deals for large customers have already been heard at sub-$34.00 cwt. levels, but it’s unclear how far that trend will spread into the rest of the market, considering US wire rod mills are notoriously firm with prices even in a soft market.