While US long product mills and some wire drawers remain operational during the coronavirus outbreak, the outlook for end-use demand remains unclear. Closures at manufacturing plants vary depending on the region and company size, but the overall consensus in the market is that “things will get worse before they get better.”
Looking ahead, scrap prices in the US are poised to put significant pressure on US domestic wire rod prices, with predictions pointing to a drop in April scrap prices of up to $50/mt. Already, sources tell SteelOrbis that some US domestic wire rod offers have been heard below the $30.00 cwt. ($600/nt or $661/mt) ex-mill, compared to the average range reported last week of $30.00-$31.00 cwt. ($600-$620/nt or $661-$683/mt) ex-mill. Sources say that while it’s still unclear whether US wire rod mills will announce a formal price decrease once scrap prices settle, “there’s no getting around the fact that prices are going down,” one source said.