A week of neutral pricing in the US import wire rod market might not be long enough to determine whether the price downtrend of Q1 has finally relented, but sources tell SteelOrbis that the chances of prices slipping further are slim. Despite lackluster demand, Turkish mills are reportedly unwilling to negotiate any further than the current CFR range, especially considering scrap forecasts for May. Still, some traders say that slightly lower price points can be reached for certain buyers, although that doesn’t necessarily mean the sales price range in the US will drop below $24.50-$25.50 cwt. ($490-$510/nt or $540-$562/nt) DDP loaded truck in US Gulf ports—such deals are “outliers” in the overall market trend.
As for deals in the US domestic wire rod market, fewer are available this week compared to last week, indicating a slightly favorable trend for US mills. The current spot prices range is unchanged at $26.50-$27.50 cwt. ($530-$550/nt or $584-$606/mt) ex-mill, but sources tell SteelOrbis that even if scrap prices improve in the near-term and demand picks up, mills might be more cautious than usual about raising transaction prices, not wanting to “scare customers away toward imports.”