Now that a scrap price decrease this month is almost assured, US wire rod buyers have found themselves in a “negotiable position” with US domestic wire rod mills, according to sources. Part of this leverage includes virtually ignoring the $2.25 cwt. ($45/nt or $50/mt) price increase that was set to go into effect February 1. Sources say buyers are even holding off on making orders, under the belief that they can even negotiate wire rod prices downward after scrap prices settle.
However, market sentiment does not support an “official” mill price decrease in the near-term, as “mills are going to hold on to whatever they can, for as long as they can,” one source said. Any deals will reportedly be made on a case-by-case basis, but until then, spot prices for US domestic wire rod are expected to remain around $28.00-$29.00 cwt. ($560-$580/nt or $615-$637/mt) ex-mill.