Although predictions are mixed for the specific amount, the consensus in the US steel market points to higher domestic scrap prices in November. However, regardless of whether scrap prices rise a meager $10/mt or a more substantial $30/mt, sources tell SteelOrbis that the raw material uptrend will have little to no impact on US domestic wire rod prices.
Demand for wire rod in the US is so weak that “virtually nothing” will raise prices outside of an uptick in purchasing activity, which has decreased from contractions in the US manufacturing sector along with the continuous flow of low-priced wire product imports that are not subject to Section 232 tariffs, thus directly competing with US wire product manufacturers who are paying higher prices for tariffed wire rod imports.
Some sources think US domestic wire rod mills might announce a price increase in an attempt to shore up spot prices because “they have a history of trying stuff like that.” But sources are clear that such an attempt will almost certainly prove unsuccessful.
For now, US domestic wire rod prices are unchanged this week at $28.50-$29.50 cwt. ($628-$650/mt or $570-$590/nt) ex-mill.