Although demand and inquiry activity in the US import wire rod market has not measurably changed week-on-week, sources tell SteelOrbis that the downtrend in the US domestic wire rod market is already affecting quoted offers for imports.
Whether US wire rod mills announce an official price decrease or offer discounts on a customer-by-customer basis, the potential for lower domestic prices has inspired US wire rod buyers to seek out lower import offers. Already, sources say that previous offer levels for German wire rod are now “unfeasible.”
Because US domestic wire rod prices have only started to erode on the top end, firm transactions for US import wire rod at lower price levels have not yet materialized. However, sources say buyers are likely uninterested in import wire rod offers to the US from Germany at prices higher than $36.50 cwt. ($805/mt or $730/nt) DDP loaded truck in US Gulf ports.