Demand for import wire rod in the US market has continued to trend weak, and low inquiry activity has left offer prices stable. However, sources say they are optimistic that Section 232 tariffs will “not last forever,” with some even predicting they could be revoked by the end of the year. If so, import activity would “absolutely” pick up on lower price levels.
However, other sources are concerned that US domestic wire rod market trends could result in competitive US prices compared to imports. Resistance to higher prices and a likely drop in US domestic scrap prices this month could make US domestic wire rod prices vulnerable, and if buyers are able to pull the spot range downward, they are likely to satisfy their buying needs with domestic instead of imports.
This week, offers for imported wire rod in the US domestic market from Brazil are still being heard ranging between $35.00-$36.00 cwt. ($700-$720/nt or $772-$794/mt) DDP loaded truck in US Gulf ports, while offers from Germany are still around $36.50 cwt. ($730/nt or $805/mt) DDP loaded truck in US Gulf ports and offers from Greece are around $36.00-$37.00 cwt. ($720-$740/nt or $794-$816/mt) DDP loaded truck in US Gulf ports.