As predictions for June shredded scrap prices range from a $10/lt to a $30/lt decrease, US wire rod buyers down the supply chain are already putting pressure on US domestic mills to lower transaction prices for July shipments. However, even a significant drop in raw materials could result in a neutral wire rod price move (officially, at least--spot prices could still soften), considering mill reactions to scrap so far this year; some scrap decreases resulted in neutral transaction pricing, while some neutral scrap moves resulted in transaction price increases. For now, spot prices are still in the range of $36.00-$37.00 cwt. ($794-$816/mt or $720-$740/nt) ex-mill, but deals reported in the last week for around $0.25 cwt. ($5.50/mt or $5/nt) are widening to a larger customer range.
Import prices, meanwhile, have also remained steady in the last week amid pressure to decline. Traders tell SteelOrbis that very few customers are interested in Turkish offer prices of $33.75-$34.75 cwt. ($744-$766/mt or $675-$695/nt) DDP loaded truck in US Gulf ports because they are confident that prices have not hit bottom yet. Chinese wire rod is garnering slightly more interest, but many traders are still not sure the low prices of $33.50-$34.50 cwt. ($739-$761/mt or $670-$690/nt) DDP loaded truck in US Gulf ports are worth the high risk of potential claims once the product hits US ports.