Although US domestic wire rod mills were able to capture half of their $2.00 cwt. ($40/nt or $44/mt) price increase announced for October shipments, sources tell SteelOrbis that it will be “virtually impossible” to push through the other half of the increase after shredded scrap prices dropped by up to $40 per ton this month, depending on the region. Further, sources say downward pressure is already mounting against wire rod spot prices, with reported deals cutting into the $1.00 cwt. ($20/nt or $22/mt) gain.
So far, sources say, US domestic wire rod mills have been able to “fend off” much of the pressure to cut deals, leaving spot prices in the range of $31.00-$32.00 cwt. ($620-$640/nt or $683-$705/mt) ex-mill. However, the status quo is not expected to last long, and sources expect an overall drop in the spot price range by as early as next week.