Continued lackluster demand for wire rod in the US domestic and import markets combined with softening scrap prices in the US and abroad has put pressure on wire rod prices across the board, and sources tell SteelOrbis the trend change from sideways to slightly down could last “a while.”
Already this week, import wire rod offers from Turkey have dropped by about $0.50 cwt. ($10/nt or $11/mt) since our last report a week ago, but sources say the lower prices have not yet garnered an uptick in interest. Turkish offers of imported product in the US domestic market are now in the range of $23.50-$24.50 cwt. ($470-$4900/nt or $517-$540/mt) DDP loaded truck in US Gulf ports.
Adding to the concern of buyer interest, wire rod import positions are still flowing into US ports, with 125,348 mt in import permits recorded for February and 92,701 mt recorded this month as of March 21. Balancing the need for future orders with the need to clear existing inventory is “frustrating” according to one trader, who hopes an uptick in demand this spring will help.