Although US wire rod buyers are reportedly well stocked with material, sources say several market factors are pointing to a drop in US domestic wire rod prices in the coming weeks. The main driver in the trend is US domestic scrap prices, which dropped $75/gt this month, and early speculation is pointing to another scrap decrease in June.
Already, some buyers report less reluctance from mills to offer deals, but if scrap comes down for a second consecutive month, wire rod prices “will have nowhere to go but down,” one source said, adding that wire rod prices specifically will soften at a faster rate than other long products, such as rebar.
For now, US domestic wire rod prices are holding steady in the range of $65.00-$67.00 cwt. ($1,422-$1,477/mt or $1,300-$1,340/nt) ex-mill, but that range is expected to drift downward soon.