In reaction to Midwest shredded scrap prices falling $10-$20/ton this month, the US domestic wire rod market is even more vulnerable to an official mill price decrease, but sources tell SteelOrbis that while a decrease announcement would make sense, the growing consensus is that US wire rod mills are reluctant to make things “official.” Instead, sources expect increased flexibility at the negotiation table, with mills extending existing large-customer deals to the rest of the market.
Already, the overall spot transaction range has sagged by about $0.25 cwt. ($5/nt or $5.50/mt) in the last week, bringing prices down to $24.25-$25.25 cwt. ($485-$505/nt or $533-$555/mt) ex-mill. The only thing helping US domestic wire rod prices, according to sources, is diminished interest in imports—so far in October, tonnage levels indicate the full-month total will be lower compared to September, which means less position availability.