While US domestic wire rod mills had recently been able to push part of the $1.00 cwt. ($22/mt or $20/nt) April price increase through to smaller customers, the $5-$10/long ton (depending on region) decrease in scrap this month has cast a shadow over that minor success. Sources tell SteelOrbis that wire rod buyers are poised to push for lower prices in light of the scrap trend, and small- to medium-sized orders should fall back into the range of $37.00-$38.00 cwt. ($816-$838/mt or $740-$760/nt) ex-mill soon. As for larger customers, who were still able to negotiate below $37.00 cwt., it is not quite clear if they can use their position to deepen their deals, but unless the scrap trend begins to show signs of a turnaround for next month, it will be a "buyer's market" for wire rod, especially in the Midwest and Southeast regions, according to sources.
As for imports, both Turkish and Chinese offer prices are unchanged from last week, but traders tell SteelOrbis that they have a better chance to negotiate lower prices with Chinese mills as of late. Turkish mills are standing firm with their prices, leaving offer prices in the US at $34.00-$35.00 cwt. ($750-$772/mt or $680-$700/nt) DDP loaded truck in US Gulf ports despite tepid interest. Import offer prices for Chinese wire rod, meanwhile, are still in the range of $33.50-$34.50 cwt. ($739-$761/mt or $670-$690/nt) DDP loaded truck in US Gulf ports, but there is a good chance prices will trend down by as early as next week.