Sources tell SteelOrbis that “no one is rushing out” to buy import wire rod in the US now that most major import sources are subject to Section 232 tariffs. German wire rod, for instance, had seen an uptick in US buyer interest while the country was still on the EU-wide tariff exemption list, with close to 30,000 mt in import permits recorded in May. However, prices heard before last week’s tariff announcement were hovering around $36.00 cwt. ($720/nt or $794/mt) DDP loaded truck in US Gulf ports, and adding 25 percent has made such offers unattractive, even compared to rising US domestic wire rod prices.
As for exempted sources, imported wire rod in the US domestic market from Brazil are now $35.00-$36.00 cwt. ($700-$720/nt or $772-$794/mt) DDP loaded truck in US Gulf ports, reflecting an increase of $1.00 cwt. ($20/nt or $22/mt) on the low end of the range. Sources tell SteelOrbis that further moderate upticks are expected as Brazilian exporters maintain a “balanced, not-too-wide margin” between their offers to the US and offers from other countries.