As the US import wire rod market prepares for the Section 232 tariffs to go into effect as of March 23, sources tell SteelOrbis that new offers are still on hold as various countries seek exemptions. So far, Canada and Mexico have received “temporary” exemptions, and news reports indicate that Australia could be exempted as well. Japan, South Korea, Turkey, Brazil and the EU are also reportedly actively seeking exemptions, although it is unclear whether they will be granted.
In the even the exemption requests are denied for most countries, traders tell SteelOrbis they expect to present new import wire rod offers to customers not long after the tariff effective date, and considering the price trend in the US domestic wire rod market, import offers will be “comparatively attractive,” even with the 25 percent tariff included.
Currently, US domestic wire rod spot prices are ranging from $36.25-$36.75 cwt. ($725-$735/nt or $799-$810/mt) ex-mill, which does not yet include a $2.50 cwt. ($50/nt or $55/mt) price increase announced by US wire rod mills this week. If the latest increase is eventually absorbed into the market, it would put US domestic wire rod prices on par with the last-heard import wire rod offers plus 25 percent. And if US wire rod mills keep pushing out price increases, traders tell SteelOrbis they expect customers to renew interest in import offers.