With “zero chance” the announced $2.25 cwt. ($45/nt or $50/mt) US domestic wire rod price increase announced a couple weeks ago will actually absorb into the market as of April 1, sources tell SteelOrbis they’re now wondering how vulnerable spot prices will get if scrap prices tumble too far next month.
Initially, the dim prospects for the increase, combined with the remaining $0.75 cwt. ($15/nt or $18/mt) of the similar price increase that was supposed to take effect March 1, pointed to a neutral trend “at best” for US wire rod in April. Last week, SteelOrbis reported that wire rod spot prices will “very likely” become negotiable, with little chance of an official mill price decrease.
This week, sources tell SteelOrbis that while a price decrease announcement is still unlikely, an official rescission of the April 1 increase is possible. That would allow mills to indicate that prices are neutral—on paper, at least—and free them to offer “whatever deals they want,” according to one source. Either way, sources agree that downticks in the average US wire rod spot price range could be apparent as early as next week.
Until then, US domestic spot prices are unchanged this week in the range of $29.50-$30.50 cwt. ($590-$610/nt or $650-$672/mt) ex-mill.