After weeks of holding tight to wire rod prices in the face of plummeting Chinese competition, Turkish wire rod mills finally relented this week and dropped import offers to the US. Declining scrap prices in Turkey were also a contributing factor, but sources tell SteelOrbis that Chinese wire rod was beginning to infiltrate other markets in addition to the US, which left Turkish mills no choice but to soften up offer prices. Traders report, however, that interest in Turkish wire rod is still weak, and therefore sales prices in the US are still in the range of $32.00-$33.00 cwt. ($705-$728/mt or $640-$660/nt) DDP loaded truck in US Gulf ports. Meanwhile, Chinese wire rod prices might have hit bottom, according to sources. The current offer range of $29.25-$30.25 cwt. ($645-$667/mt or $585-$605/nt) DDP loaded truck in US Gulf ports is unchanged from last week; but while the price plunge seems to have ceased, it will probably be a long time before prices crawl back up.
In the US domestic market, the $4.00 cwt. ($88/mt or $80/nt) price increase "bust" has paved the way for a fluid spot market in which nearly every order is individually negotiated and nothing is set in stone. Most spot prices are still in the range of $33.00-$34.00 cwt. ($728-$750/mt or $660-$680/nt) ex-mill, with large orders taking place at the lower end of the range or slightly below. With shredded scrap prices dropping this month by nearly $30/long ton in the Midwest, sources expect US wire rod mills to characteristically hold tight to the current range--there's a good chance they will try to keep prices level.