Purchasing activity in the US domestic and import wire rod markets remained quiet this week due to the Independence Day holiday, but sources say US mill prices may soften as the summer progresses. Demand is at “normal” levels for this time of the year, according to sources, but many buyers are waiting to see if there will be any changes to the Section 232 tariff situation before making large purchases, either domestically or from import sources.
Most imports are priced much higher than current US domestic wire rod spot prices, with the exception of Brazil, which is under a quota agreement with the US instead of tariffs. Imported wire rod in the US domestic market from Brazil is still being offered at $35.00-$36.00 cwt. ($700-$720/nt or $772-$794/mt) DDP loaded truck in US Gulf ports, reflecting no change in the last week.
On the domestic side, sources say buyers are in a much stronger position now that the US DOC is investigating recent price hikes in the US domestic steel market. Combined with expectations of a sideways trend in July shredded scrap prices, the current US domestic wire rod spot price range of $40.00-$41.50 cwt. ($800-$830/nt or $882-$915/mt) ex-mill is not expected to last.