After US domestic wire rod prices “hit the ceiling” last month, demand has continued to soften and sources say price points are likely to follow the demand trend downward. Raw material prices are also putting pressure on US wire rod prices, with predictions pointing to an approximate $20/mt decrease in shredded scrap for August.
While sources expect wire rod deals to become more widespread and continue dragging down the general price range, they do not necessarily believe lower prices will lead to increased buying activity. Seasonal summer slowness is expected to transition into buyer hesitation in early fall, with the fate of US import wire rod depending on a variety of lawsuits and potential Congressional action. If market factors conspire to make import prices competitive once again, US domestic wire rod prices are likely to drop further to garner orders. Until then, US domestic wire rod prices are stable this week in the range of $39.50-$40.50 cwt. ($790-$830/nt or $871-$915/mt) ex-mill.