Despite a downtrend in US scrap prices this month and a projected downtrend next month as well, some in the US domestic wire rod market are speculating that prices could rise in the near-term. One source, who said as recently as last week that buyers were “settled on inventory” and “in no rush to place orders for a while” after prices peaked in late July, now reports increased inquiry activity.
Part of the reason behind the renewed interest in US wire rod is the aforementioned expectation of a mill price increase. But other sources say the only thing that’s changed in the last week is the doubling of Section 232 tariffs on Turkish steel, which shouldn’t have much of an impact on the US wire rod import market considering the country has accounted for less than 1,000 mt in wire rod imports to the US since July 2017. However, import license data show that as of August 14, the US has recorded 36,523 mt of wire rod import permits from Turkey this month, and if it arrived prior to Aug. 13, when the new 50 percent tariffs went into effect, sources say it will be “the best deal around for a while.”
For now, US domestic wire rod prices are stable in the range of $39.50-$40.50 cwt. ($790-$830/nt or $871-$915/mt) ex-mill.