One week after the second price increase of the year was set to take effect in the US domestic wire rod market, spot prices have remained unchanged and sources tell SteelOrbis that the increase’s prospects are “dim.” Some market insiders were hopeful that at least a portion of the $2.25 cwt. ($45/nt or $50/mt) increase would push through, but with US domestic scrap prices settling at sideways in the Midwest this month, US wire rod mills have little leverage to aggressively firm prices.
Additionally, US wire rod buyers reportedly have “ample inventories” after buying substantial imports last year. Sources say buyers are trying to “ride out” the price increases, but once that inventory diminished, US wire rod mills will be in a better position to demand higher prices. For now, the best mills can do, sources say, is keeping deals “mostly unavailable” and closing most transactions in the stable, pre-increase range of $33.25-$33.75 cwt. ($665-$675/nt or $733-$744/mt) ex-mill.