Although US domestic wire rod prices absorbed before the holidays a small portion of the mid-December $3.00 cwt. ($66/mt or $60/nt) mill price increase announcement, further upticks in the New Year have been hampered by an uncertain scrap market.
While most in the wire rod market were expecting another scrap price increase this month to bolster the December price increase—along with the $1.00 cwt. ($22/mt or $20/nt) increase announced in mid-November), recent scrap market activities indicate a sideways or even downtrend could be possible.
Sources tell SteelOrbis that the December wire rod increase will be “dead” if scrap doesn’t register another uptrend this month. For now, US domestic wire rod spot prices are trending at $40.50-$41.50 cwt. ($893-$915/mt or $810-$830/nt) ex-mill, up $1.00 cwt. since mid-December.