While the immediate reaction among US wire buyers to the steep the $3.25 cwt. ($72/mt or $65/nt) price increase announced by mills last week was resistance, sources say buyers are “coming around to the fact that prices are going up no matter what,” and as such, some of the increase has absorbed into spot prices.
Sources also report that price increases on downstream wire products like mesh and PC strand is bolstering the latest price increase, along with speculation that US scrap prices might rise again in April. This week, US domestic wire rod spot prices are up about $1.00 cwt. ($22/mt or $20/nt), bringing offers into the range of $46.00-$47.00 cwt. ($1,014-$1,036/mt or $920-$940/nt) ex-mill. Some sources also report that US wire rod mills will “likely” announce another price increase in April to help this one push through.