After US domestic shredded scrap prices settled lower this month than early predictions expected, sources tell SteelOrbis there’s a “very good chance” US domestic wire rod mills will announce an official price decrease. Similar rumors have also cropped up in the US domestic rebar market this week, and today, two major US long product mills announced a $1.00 cwt. ($20/nt or $22/mt) immediate price decrease for merchant bar products, bolstering expectations of a sector-wide price decrease.
Ahead of anything official, sources tell SteelOrbis that US domestic wire rod spot prices are already vulnerable to erosion, with “virtually no one” paying the high end of last week’s spot price range of $38.50-$39.50 cwt. ($770-$790/nt or $849-$871/mt) ex-mill. However, some sources say that instead of an official announcement, mills might simply negotiate downward on a customer-by-customer basis. Either way, this week’s spot price range is expected to drift down in the coming weeks.