With rumors of a possible decrease in US domestic wire rod prices on the horizon, sources tell SteelOrbis that already-lackluster inquiry activity into wire rod import offers has declined further as buyers wait to see how low domestic spot prices might go. With predictions of a $20/ton drop in shredded scrap prices next month, sources say wire rod prices could drop by just as much. And while that would still leave a decent spread between import and domestic offers, the combined incentives of small tonnage orders and short lead times will mean more customers turning to domestic mills to fill their inventory holes.
For now, traders say most offers for Turkish wire rod are still trending between $21.50-$22.50 cwt. ($430-$450/nt or $474-$496/mt) DDP loaded truck in US Gulf ports, although traders tell SteelOrbis they are more interested at reducing position inventory. As of September 27, the US brought in 115,254 mt of wire rod for the month, according to import license data. Along with August’s preliminary census total of 141,552 mt, sources say the focus will be on positions for “a good portion of the fourth quarter.”