Now that the Section 232 investigation into steel imports has been delayed indefinitely, traders tell SteelOrbis that they are seeking new quotes for import wire rod. While few orders have been completed, offers are reportedly higher than they were in June, when inquiry activity started to halt in anticipation of the Section 232 results. The uptrend in global scrap prices are the primary driver of higher wire rod import offers, which sources say are around $570/mt CFR at minimum, depending on the country of origin.
However, traders say US buyers have not jumped back into the import market with the same “enthusiasm” as the import rebar market, mainly due to the ongoing AD/CVD investigation into wire rod imports from 10 countries. Preliminary margins in the case are expected to be announced in early September, and while there is no guaranteed preliminary or final margins will resemble the alleged dumping margins listed when the investigation was initiated—alleged margins range from 18.89-756.93 percent—sources say there is a chance that “Section 232 sentiment” could influence the final findings and deliver steep margins.
Until the preliminary margins are announced, traders say they plan to “take it easy” with new orders. As for import sales prices in the US, traders have “cautiously lifted” prices to take the uptrend into account. As such, Turkish offers of imported wire rod in the US domestic market are now ranging from $25.50-$26.50 cwt. ($510-$530/nt or $562-$584/mt) DDP loaded truck in US Gulf ports, reflecting an increase of $2.00 cwt. ($40/nt or $44/mt) compared to previously reported prices.