Although the US domestic wire rod price increase announcement earlier this month was met with deep skepticism, sources tell SteelOrbis that the market is solidifying and higher prices could be seen early next year. So far the $1.25 cwt. ($25/nt or $28/mt) price increase has not absorbed into spot prices, which remain level at $28.50-$29.50 cwt. ($628-$650/mt or $570-$590/nt) ex-mill, yet prices have “clearly hit bottom” and are not expected to drop further.
Weak demand still remains an issue, sources say, which has also left US import wire rod prices stagnant. Offers from Germany are stable this week at $28.50-$29.00 cwt. ($628-$639/mt or $570-$580/nt) DDP loaded truck in US Gulf ports. Offers from Brazil, meanwhile, are unchanged at $28.25-$29.25 cwt. ($623-$645/mt or $565-$585/nt) DDP loaded truck in US East coast ports.
While wire rod imports in the US remain at low levels, sources have noted that wire mesh imports from Mexico are increasing in volume, and the “comfortable” margin between import and US-produced mesh prices are putting pressure on US domestic mesh producers.