There have been no big changes in the US domestic
wire rod market in the past week, with low carbon prices this week still ranging from $25.00 cwt. to $26.00 cwt. ($551 /mt to $573 /mt or $500 /nt to $520 /nt) ex-mill. High carbon deals still range from $28.00 cwt. to $29.00 cwt. ($617 /mt to $639 /mt or $560 /nt to $580 /nt) ex-mill. There are reportedly some offers out there for large tonnage buyers that are below $25.00 cwt. ex-mill. However, it is too soon to tell whether or not these lower prices will eventually be extended to all buyers. In general, the domestic pricing trend for
wire rod is still down. Import
wire rod offering prices have stayed at the same range as last week, with mesh grade still going for $22.75 cwt. to $23.75 cwt. ($502 /mt to $524 /mt or $455 /nt to $475 /nt) FOB, loaded-truck, in US Gulf ports. Drawing quality still ranges from $24.50 cwt. to $25.50 cwt. ($540 /mt to $562 /mt or $490 /nt to $510 /nt) FOB, loaded-truck, in US Gulf ports. For now, the pricing trend for import
wire rod is still neutral, though this may change in the near future. For one, the market in
Turkey has picked up slightly, with mills starting to raise prices. Furthermore, there are still a few uncertainties about the Chinese government's reported discussions on the possible elimination of the VAT rebate on
wire rods and most other steel products. No official announcement will be made until December 15. If the VAT rebate on
wire rods is eliminated, in the long run, this could push up the price of Chinese import
wire rod and decrease the amount of Chinese import
wire rod shipments to the US. Also, in
Mexico, workers at the Sicartsa
wire rod mill went on strike last Thursday. Though this is only a “warning” by the union, and the stoppage supposed to be brief, any lasting disruption in the Mexican
wire rod market would be felt in the US as well. Still, it is too soon to speculate on the outcome of either of these situations. Final census data from the US Import Steel Monitor for the first nine months of 2006 (the most recent year-to-date data available), confirm that
China is still by far the most prominent import source for
wire rod shipments to the US, exporting a total of 898,761 mt to the US during this time period. Other major import sources for
wire rod this year include:
Canada at 227,002 mt (YTD September ’06),
Turkey at 211,628 mt for the same time period, and
Brazil at 111,080 mt, also for the same period.