After a brief respite last week, import wire rod offers to the US have increased this week, although US buyers are disinterested to say the least.
Attributed to a strong local market, Turkish mills have increased their wire rod offers to the US in the last week, by about $0.25-$0.75 cwt. ($5.50-$16/mt or $5-$15/nt), widening the import price range to $37.50-$38.50 cwt. ($827-$849/mt or $750-$770/nt) DDP loaded truck in US Gulf ports. However, some US traders refer to the increase as "hypothetical," considering the lack of interest for imports in the US market. In fact, some prices have been heard even above that range from certain mills, although there is virtually no chance that US buyers will bite.
On the US domestic front, wire rod mills were likely disappointed with the sideways trend in scrap pricing this month, as a slight increase could have helped their efforts to hold on tight to spot prices. The general range has not changed in the last week, still hovering at $36.75-$37.75 cwt. ($810-$832/mt or $735-$755/nt) ex-Midwest mill, but as before, reports are still emerging of deals slightly below the range being made to certain customers and large tonnage orders, closer to $36.50 cwt. ($805/mt or $730/nt) ex-Midwest mill.
Overall, US domestic wire rod prices remain vulnerable in such a low-demand environment, and sources tell SteelOrbis that spot prices could start chipping away in the near-term, unless something major happens to change the market--such as the passage of US President Obama's recently-announced American Jobs Act, which proposes to spend $105 billion on public works projects. Leaders in the steel and construction industries have applauded the proposal, and if it passes in Congress, wire rod would see a significant uptick in demand.