Although US domestic wire rod prices have been on a steady downtrend for months, buyers are still largely waiting for spot prices to bottom, and as such buying activity is more tepid than usual during the normal summer slowdown in the market. In light of these conditions, US wire rod mills announced a $2.50 cwt. ($55/mt or $50/nt) price decrease for wire rod last week, but sources say that doesn’t mean the current spot range is suddenly $2.50 cwt. lower.
The price decrease announcement is interpreted by sources as more of a way to retroactively justify how low prices have already dropped, rather than an attempt to plunge prices lower. As such, the spot price range has only dropped by $1.00 cwt. ($22/mt or $20/nt), which, as sources say, is what the range might have shifted by anyway, without a formal announcement. US domestic wire rod spot prices are now in the range of $54.50-$55.50 cwt. ($1,201-$1,224/mt or $1,090-$1,110/nt) ex-mill.