Although price uptrends within the US domestic scrap and import wire rod markets have provided US domestic wire rod mills with ample leverage to raise transaction prices, sources are still skeptical that last week’s announced $2.25 cwt. ($45/nt or $50/mt) wire rod price increase, effective with shipments as of Jan. 2, 2018, will be fully absorbed into the market. Half of the increase amount “at most” will likely go through, some sources say, while others expect mills to be “more aggressive than usual” when it comes to this increase, compared to others over the past year that have been partially absorbed or completely ignored in the market.
In response to the more optimistic prospects for the increase, certain US wire product manufacturers have raised prices above and beyond the wire rod mill increase. Today, a Midwest wire mesh producer announced a $3.00 cwt. ($60/nt or $66/mt) price increase for their products, and others are expected to follow.
For now, spot prices within the US domestic wire rod market are stable week-on-week, in the range of $31.00-$31.50 cwt. ($620-$630/nt or $683-$694/mt) ex-mill, although sources note that deals beneath the current spot range are already becoming “difficult” to obtain.