With a tepid demand situation in the US domestic wire rod market, spot prices are reportedly “quite vulnerable” to other market factors, including scrap. And with the latest predictions for US domestic scrap prices pointing to a substantial decrease in October (anywhere from $20-$40/mt), US wire rod prices are already feeling the downward pressure.
This week, US domestic wire rod spot prices have declined to $29.50-$30.50 cwt. ($650-$672/mt or $590-$610/nt) ex-mill, reflecting a decrease of $1.00 cwt. ($22/mt or $20/nt) in the last week. Sources tell SteelOrbis that prices have not yet hit bottom, and as the US scrap trend becomes clearer in the coming week, more wire rod price declines are possible in the near-term.