Although sources tell SteelOrbis that US wire rod buyers have been “in contact” with traders to discuss potential import offers, the latest news that temporary exemptions from the Section 232 tariffs will expire as of May 1 has reportedly “scared off” buyers.
After Brazil and Germany—two major sources of US import wire rod—were added to the short list of countries exempted from the 25 percent tariff, sources say buyers began inquiring about possible import offers. But now that those exemptions will expire before orders booked now arrive at US ports, trader sources say offers are once again on hold. Negotiations on a country-by-country basis might bring a more “solid clarity” to the market in the upcoming weeks, but for now, the only bright spot in the US wire rod market is the slow pace of the uptrend in US domestic wire rod prices.
The last heard offers for imported wire rod in the US domestic market—which predate Donald Trump’s Section 232 announcement on March 8—were around $31.50 cwt. ($630/nt or $694/mt) DDP loaded truck in US Gulf ports from Germany; adding a 25 percent tariff would bring offers up to around $39.00 cwt. ($780/nt or $860/mt) DDP loaded truck in US Gulf ports.