Despite slow current buying activity in the US import wire rod market and a downward drift in prices as recent as last week, sources say offer prices could soon rise. Stronger demand is expected in the coming months, and sources say inventories are currently low, which means many buyers will start placing orders “all at once,” a situation importers might take advantage of with higher prices.
However, other sources say the high volume of currently-arriving wire rod imports could mitigate any uptrend in offers for future arrival. According to US import license data, January wire rod import license permits totaled 105,920 mt, a significant increase from the 77,925 in permits for December. While positions were likely ordered at higher prices, sources say importers might be willing to cut deals to clear out higher-priced inventory.
For now, import wire rod offers have trended stable week-on-week, with import wire rod offers to the US from Germany are now in a wider range of $34.00-$36.00 cwt. ($750-$794/mt or $680-$720/nt) DDP loaded truck in US Gulf ports, and offers from Australia at $33.00 cwt. ($728/mt or $660/nt) DDP loaded truck in US Gulf ports.