Import wire rod prices firm up in the U.S. market

Import wire rod prices firm up in the U.S. market

Import offers for mesh quality wire rod are ranging $21.50–22.50 cwt. ($474-$496/mt) FOB loaded truck in US Gulf ports. This represents a price increase of about $20-30/net tons ($22.05–33.07/mt) from three weeks ago. Price increases reflect significant scrap gains in European markets. On the low end of price spectrum, there are Chinese rod offers. This is the first time in a long time Chinese offers are less than the European and Turkish offers. Most Chinese mills have better quality than typical European mesh quality wire rod producers. Therefore their rods can be put in more demanding drawing quality applications. At this new price level, few transactions are reported. Buyers still have plenty of inventories and prefer to wait until local price increase takes hold before they commit to new import levels. Gerdau Ameristeel’s Beaumont, Texas plant is still closed due to labor dispute. Ameristeel refused the worker’s latest request return to work under the terms of the previous contract until a new labor contract is reached. Wire rod consumers have not felt any shortage even though the mill has been down more than three months now. Ameristeel is trying to cover customer demand from their other mills in New Jersey and Florida.