Although sources do not report a significant improvement in demand within the US domestic wire rod market, prices have firmed up week-on-week. Sources say continued optimism about spring demand is partially behind the price uptick, along with expectations of higher scrap prices in March and certain regional supply issues, with one major mill reportedly only offering low levels of material to the market due to input constraints.
As such, US domestic wire rod spot prices have increased by approximately $1.00 cwt. ($20/nt or $22/mt) on the low end, and $0.50 cwt. ($10/nt or $11/mt) on the high end, bringing the average range to $30.00-$31.00 cwt. ($600-$620/nt or $661-$683/mt) ex-mill.
Sources further indicate that if US domestic scrap prices increase next month, US domestic wire rod mills are likely to announce a price increase, which might not face the level of resistance with increases announced in the last few months.