Although spot prices in the US domestic wire rod market are still under tremendous pressure, US mills have managed to stave off the gradual price drops that occurred in the market in the last few weeks. Prices are still in the range of $35.50-$36.50 cwt. ($783-$805/mt or $710-$730/nt) ex-mill, but sources tell SteelOrbis that spots are expected to drop another $0.50 cwt. ($11/mt or $10/nt) soon--perhaps even within the next week--due to soft demand and buyers sticking to small-scale orders.
However, the domestic demand situation is not the only reason US buyers are reluctant to place large orders--they are also waiting for import prices to soften further. Import wire rod offers from Turkey have not moved in the last week, and at $35.75-$36.75 cwt. ($788-$810/mt or $715-$735/nt) DDP loaded truck in US Gulf ports, they are still too high for US buyers to show any interest. But sources expect sizeable drops in Turkish wire rod prices in the near future, and if US mills are able to keep domestic prices from slipping too much in the next couple months, import offers might look much more feasible.