While it is unusual for price movements within the US domestic wire rod market to be released as official announcements, it is even rarer for downstream wire products. But earlier this week, Nucor announced a substantial $1.50 cwt. ($30/nt or $33/mt) transaction price increase for all mesh products, effective with shipments as of June 1. Sources tell SteelOrbis that it’s telling that the increase is not intended for wire rod, but the message means more than just a bullish outlook for construction activity. Overcapacity has plagued the wire mesh market for too long, say sources, putting more pressure on prices than increases for wire rod were able to lift. As such, by targeting mesh specifically, mills will be able to take a firmer stance than they can for wire rod in general, greatly improving their odds at pushing the increase through. Whether this “downstream price targeting” will become a trend remains to be seen, but for this week at least, the general wire rod market remains stagnant, with spot prices still in the range of $32.50-$34.00 cwt. ($650-$680/nt or $728-$761/mt) ex-mill. However, sources say that few transactions are taking place at the higher end of the range due to weak scrap prices.
As for imports, Turkey is continuing to push for increased wire rod offers to the US, but traders insist that current prices are too high for serious consideration, let alone higher prices. Therefore, while there has been a $10/mt increase in offers on the CFR side this week, import offer prices in the US are still ranging from $32.00-$33.00 cwt. ($640-$660/nt or $705-$727/mt) DDP loaded truck in US Gulf ports.