Although Nucor tried to circumvent the typically-difficult nature of wire rod price increases by boosting mesh prices instead, there is little chance they will be able to push through the full $1.50 cwt. ($30/nt or $33/mt), and zero chance they can translate that over to firmer wire rod spot prices. The main obstacle, besides lackluster demand, remains the April deluge of wire rod imports from China, which have persisted in availability. According to US import data, the US imported 111,881 mt of wire rod from China in April (preliminary census data), on top of 64,839 mt so far in May (license data as of May 27). While this indicates “the beginning of the end” for Chinese wire rod import arrivals, traders tell SteelOrbis that there is still so much available, they are having a hard time booking future orders for Turkish wire rod in the offer range of $32.00-$33.00 cwt. ($640-$660/nt or $705-$727/mt) DDP loaded truck in US Gulf ports.
As for US domestic wire rod spot prices, the high end of last week’s range has eroded by about $0.50 cwt. ($10/nt or $11/mt), putting the new range at $32.50-$33.50 cwt. ($650-$670/nt or $728-$750/mt) ex-mill. Sources tell SteelOrbis that with predictions of another downtrend in scrap prices, wire rod spot prices are vulnerable to further softening.