Considering the overall tepid demand environment in the US domestic wire rod market, sources tell SteelOrbis they are “not surprised” that the $1.50 cwt. ($30/nt or $33/nt) price increase announced this month has failed to gain much traction. The only impact so far is a reported $0.50 cwt. ($10/nt or $11/mt) increase on the high end of last week’s price range, leaving the low end intact. Sources also report the continued availability of deals below the low end of the range for customers looking to book significant tons.
Sources say this slight hike on the high end of the spot price range is “probably all mills will get” in the near-term considering US domestic scrap prices are expected to drop slightly next month, but some sources contend that an uptrend in wire rod is “inevitable,” with mills aiming to lift prices up to around $33.00 cwt. ($660/nt or $728/mt) ex-mill within the next few months.
Until then, US domestic wire rod offer prices this week are in the widened range of $29.00-$30.50 cwt. ($580-$610/nt or $639-$672/mt) ex-mill.