With $0.75 cwt. ($15/nt or $18/mt) still remaining of the US domestic wire rod price increase that was supposed to take effect March 1, combined with “zero traction” in the $2.25 cwt. ($45/nt or $50/mt) price increase announced for April 1, market sources are reportedly “surprised” to see continuing efforts by US domestic wire rod mills to lift spot prices.
This week, Nucor issued a letter to customers indicating that it will “maintain (rolling over from April) our current transactional prices on all wire rod shipments.” Further, Nucor issued a separate letter announcing a $3.00 cwt. ($60/nt or $66/mt) price increase specifically for wire mesh products, effective with shipments as of April 17.
While sources contend that mesh products are doing “slightly better” than wire rod in terms of demand, sources say the move “doesn’t line up” with the expected $20-$25 per ton drop in Midwest shredded scrap prices this month. Even continuing to push for the April 1 price increase for wire rod is “a strange move” according to sources.
However, other contend that Nucor’s aggressive stance—which is expected to “mostly” carry over to other mills as well—has more to do with preventing wire rod prices from slipping than a genuine belief that prices can rise. If that’s the case, sources say, “then it’s already working.” Spot prices for US domestic wire rod are unchanged this week, still ranging from $29.50-$30.50 cwt. ($590-$610/nt or $650-$672/mt) ex-mill, although sources say “it will be interesting” to see where prices go after the US domestic scrap market settles.