After a rapid absorption of most of the Jan. 1-effective price increase, sources say the US domestic wire rod market is primed for another increase in the near future. Purchasing activity is still slightly underneath normal levels, but an ample boost in scrap prices this month, combined with multiple successful price increases with other long products, could give mills the leverage they need to push forward another increase.
However, sources tell SteelOrbis it will likely be more modest than the $2.25 cwt. ($45/nt or $50/mt) price increase that went into effect at the start of the New Year because that increase has still not fully absorbed into spot prices.
This week, spot prices have increased by $0.50 cwt. ($10/nt or $11/mt) on the low end, but the high end of the range has remained stable. The current spot price range for US domestic wire rod is now $27.50-$29.00 cwt. ($550-$580/nt or $606-$639/mt) ex-mill. As for when the market can expect the predicted increase, sources say “most likely before the end of the month.”