Although some sources in the US domestic wire rod market speculated about a possible price increase in early fall, it is becoming more likely that US wire rod mills will wait to raise prices, with an announcement predicted closer to the middle of Q4 for an end-of-year boost. For now, sources say US domestic wire rod spot prices “don’t have much room to go up,” due to steady to high inventory levels, and spot prices are expected to remain in the range of $39.50-$40.50 cwt. ($790-$830/nt or $871-$915/mt) ex-mill in the short term.
However, sources point out that any official increase in US wire rod prices depends on market conditions staying relatively steady. A slight drop in US domestic scrap prices might not have enough of an effect on the wire rod market to prevent a price increase, but sources say imports are the “big question mark.” Uncertainty about imports is expected to maintain throughout the rest of the year, especially considering “surprise” announcement like one from the US Department of Commerce this week that US companies can apply for exclusions to quota agreements with South Korea, Argentina, and Brazil, which is a major source of US import wire rod.