As predicted, the $1.00 cwt. ($20/nt or $22/mt) US domestic wire rod price increase announced last week has had little impact in the market, with spot prices remaining relatively stable in the range of $29.50-$30.50 cwt. ($590-$610/nt or $650-$672/mt) ex-mill. However, SteelOrbis also predicted that one possible impact of the increase announcement would be fewer deals available and a concentrated effort to prevent spot prices from slipping.
Sources tell SteelOrbis that transactions at the bottom of the mentioned spot range—or slightly below—are now available for large buyers only, and most medium-tonnage orders are trending toward the top end of the range, despite a slight drop in scrap prices this month that would normally provide buyers with negotiation leverage. Sources say the main reason behind the firming trend is the anticipated results of the Section 232 investigation, due sometime this month. If the results point to potential steep tariffs for US steel imports, domestic steel prices are expected to rise.