In an attempt to resist a growing softening trend within the US domestic wire rod market, at least one US wire rod mill announced a $1.50 cwt. ($30/nt or $33/mt) price increase late last week, but sources say it is “dead on arrival.”
Despite the price increase from Nucor being “effective immediately,” spot prices for US domestic wire rod have not changed this week, and sources say there is little chance that any of the price increase will absorb into the market. However, the announcement is expected to firm up deal prices that had been taking place up to $1.00 cwt. ($20/nt or $22/mt) below the general spot price range.
As such, most transactions in the US domestic wire rod market—few as they are, in a currently lackluster demand environment—are expected to remain in the range of $39.00-$40.00 cwt. ($860-$882/mt or $780-$800/nt) ex-mill, unchanged in the last week.