Demand and inquiry activity within the US import wire rod market remained stable in the last week, along with offer prices, while new developments in the import market overall added to continual uncertainty. Rumors have spread through the market that the US might soon exchange Section 232 tariffs for quotas, which would have an immediate impact on US import wire rod prices considering most offers are coming from EU countries currently under the 25 percent import tariff. Additionally, the resolution of diplomatic dispute between the US and Turkey could lead to revising Turkey’s tariffs back down to 25 percent from the 50 percent implemented in August. However, Turkey has not been a significant source of US import wire rod since last year, and it is unclear whether moving back down to a 25 percent import level will inspire Turkish wire rod mills to seek out opportunities in the US.
Until concrete changes happen in the market, many buyers of import wire rod are operating “under the veil of uncertainty” and are reportedly very cautious with orders. As such, offer prices have remained stable this week. Offers for imported wire rod in the US domestic market from Germany are still around $36.50 cwt. ($730/nt or $805/mt) DDP loaded truck in US Gulf ports, and offers from Greece still ranging from $36.00-$37.00 cwt. ($720-$740/nt or $794-$816/mt) DDP loaded truck in US Gulf ports.