Demand and inquiry activity within the US import wire rod market has remained relatively stable in the last week, and sources tell SteelOrbis that conditions are unlikely to change before the end of the year. Even if there was a major development such as the revocation of Section 232 duties, sources say buyers would still probably wait until after the new year to place substantial orders.
Section 232 tariffs don’t appear to be in danger of going away, sources tell SteelOrbis, except on a case-by-case basis. Today, leaders of the US, Canada and Mexico signed the updated NAFTA trade deal, now called the US-Mexico-Canada Agreement, while leaving Section 232 tariffs in place. Each country’s legislature must approve the deal before it goes into effect, and sources predict that the incoming Democrat majority in the US House of Representatives might push to exempt Canada and Mexico from the tariffs as part of the approval process. As for other countries, the tariffs will remain in place “until the guy at the top decides otherwise,” one source said.
Until the tariff situation changes, US import wire rod prices are expected to trend neutral. Egyptian wire rod offers to the US are still around $38.00 cwt. ($838/mt or $760/nt) DDP loaded truck in US Gulf ports, while offers for imported wire rod in the US domestic market from Germany are around $37.00 cwt ($816/mt or $740/nt) DDP loaded truck in US Gulf ports.