Prices in the US domestic wire rod market are still weak, sources say, as the market faces the double pressures of tepid demand and low raw material costs. US domestic scrap prices settled this week at $35/mt lower than September prices, giving US wire rod buyers even more leverage to lower the spot price range. But prices were already vulnerable from continuously low demand, a situation that some sources are blaming on tariffs—while wire rod imports face a 25 percent tariff from most sources, finished wire products do not, and lower-priced finished product imports are edging out US manufacturers.
Until the demand situation changes—or scrap prices experience a significant turnaround—sources say US domestic wire rod prices will most likely continue to drop. This week, spot prices have declined by $1.00 cwt. ($22/mt or $20/nt), putting US domestic wire rod prices in the range of $28.50-$29.50 cwt. ($628-$650/mt or $570-$590/nt) ex-mill.