Although the $1.25 cwt. ($25/nt or $28/mt) US domestic wire rod price increase announced in late November failed to gain much traction in the market before the holidays, sources say prices are starting to reflect the increase now that the market has resumed and scrap is settling upward for the month. The $30/mt increase in shredded scrap prices has provided wire rod mills with leverage to firm up spot prices, which are now in the range of $29.00-$30.00 cwt. ($580-$600/nt or $639-$661/mt) ex-mill, up $0.50 cwt. ($10/nt or $11/mt) in the last week.
Sources say “this is only the beginning,” and spot prices are expected to gradually tick upward in the near term. While demand is reportedly “not terribly strong,” the lack of interest in imports is also helping US domestic wire rod mills firm up market prices.