As predicted by SteelOrbis last week, expectations for stronger demand in the near-term has pushed US domestic wire rod prices higher this week. The low end of the spot price range is now $37.00 cwt. ($740/nt or $826/mt) ex-mill, up $1.00 cwt. ($20/nt or $22/mt) week-on-week. The higher end of the range, at 38.00 cwt. ($760/nt or $838/mt) ex-mill has remained unchanged.
Sources say US wire rod mills are finding more resistance at the upper end of the range in part because “demand still has a ways to go,” and also because many buyers “see no reason” for spot prices to be as high as they are. Current US wire rod prices are well above levels seen during the same week last year, at $33.50-$34.00 cwt. ($670-$680/nt or $739-$750/mt) ex-mill, which predated the overall spike in US steel prices following the announcement of Section 232 tariffs in March 2018.
However, US wire rod mills might soon gain leverage if early predictions of a March price increase for US domestic scrap come to pass. However, even with the backing of scrap, sources say US wire rod mills are unlikely to announce a formal price increase, opting for individual deals instead.