Although shredded scrap prices dropped close to $50/long ton this week, sources tell SteelOrbis that US domestic wire rod mills will probably not match the decrease in their transaction prices. Order books are full though October and part of November, and even though wire rod spot prices slipped before scrap prices were settled, mills are confident that they can keep prices from falling too much further. A scrap uptrend is likely for the remainder of Q4, and according to sources, mills would rather not make price concessions that they'd just end up taking back when the raw material trend turns around. For now, spot prices are still in the range of $32.00-$33.00 cwt. ($705-$728/mt or $640-$660/nt) ex-mill, with clear indications of a price decrease expected as early as next week.
As for imports, offer prices have remained stable while demand has remained low. China re-entered the market after a weeklong holiday, and traders tell SteelOrbis that Chinese mills will likely announce new prices in the next few days after gauging the market. A slight uptrend is predicted to raise the current offer price range of $29.25-$30.25 cwt. ($645-$667/mt or $585-$605/nt) DDP loaded truck in US Gulf ports. Turkish offer prices, meanwhile, are also unchanged from last week, still ranging from $31.50-$32.50 cwt. ($694-$717/mt or $630-$650/nt) DDP loaded truck in US Gulf ports. However, because the margin between Turkish offers and US domestic spot prices is so close (with US prices expected to drop further), Turkish wire rod is not garnering much--if any--interest in the US right now.