As predicted in last week's report, US domestic wire rod mills have quietly dropped spot prices for most transactions, by as much as $1.25 cwt. ($28/mt or $25/nt) compared to previous levels. While the new spot price range of $33.75-$34.75 cwt. ($744-$766/mt or $675-$695/nt) ex-mill does not reflect the full November shredded scrap price decrease, there are indications that prices could slip further before the December scrap trend becomes apparent. According to sources, most US mills are mostly full for December, but January's order books are apparently wide open. Therefore, even if scrap prices rise slightly next month (which is unlikely-a sideways trend is more widely expected), it might not be enough to stave off wire rod's current downward trend.
Import offers have also declined in the last week, but not by as much as US domestic spot prices. Wire rod from Turkey has slipped $0.75 cwt. ($17/mt or $15/nt) into the range of $33.75-$34.75 cwt. ($744-$766/mt or $675-$695/nt) DDP loaded truck in US Gulf ports-mirroring the US domestic market. While this might not make Turkish offers too attractive to US buyers, sources tell SteelOrbis that Turkish prices have not hit bottom quite yet, due to a lack of orders and a volatile European economic environment. However, with the US domestic situation uncertain as well, US buyers are hesitant to make purchases too far into the future.