After holding off for a week to see just how long wire rod prices from Turkey would continue to drop, traders in the US have adjusted offer prices again, this time by about $1.50 cwt. ($30/nt or $33/mt). Still, the new offer range of $21.50-$22.50 cwt. ($430-$450/nt or $474-$496/mt) DDP loaded truck in US Gulf ports isn’t expected to inspire a flurry of orders. Sources tell SteelOrbis that demand for wire rod in the US is weaker than it’s been all year—indicated by the rare move from US mills to formally announce a price decrease—and there doesn’t seem to be much motivation for orders beyond filling inventory holes.
In light of this demand environment, wire rod spot prices have already dropped ahead of the September 1 effective date. Sources say mills are now offering for around $26.50-$27.50 cwt. ($530-$550/nt or $584-$606/mt) ex-mill, reflecting a $1.00 cwt. ($20/nt or $22/mt) decline. However, that only cover’s Gerdau’s decrease—Nucor’s decrease letter promise $0.50 cwt. ($10/nt or $11/mt) more. Sources say there is a “struggle” to keep spot prices up despite the announcements—and low demand—and there is a good chance the full $1.50 cwt. ($30/nt or $33/mt) won’t be met.