Although wire rod demand in the US is quieting in the lead up to the holidays at the end of this month, market factors have put enough pressure on import wire rod offers to push prices upward. Scrap prices are currently experiencing a global uptrend, and sources tell SteelOrbis that buyers have “caught on that the time to buy is now, not later.”
As such, offers of imported wire rod in the US domestic market from Germany are now ranging from $30.50 cwt. ($610/nt or $672/mt) DDP loaded truck in US Gulf ports, reflecting an increase of $0.50 cwt. ($10/nt or $11/mt) in the last week. Imported wire rod in the US domestic market from Egypt and India have also increased by about $0.50 cwt., into the levels of $31.25 cwt. ($625/nt or $689/mt) DDP loaded truck in US Gulf ports and $29.50 cwt. ($590/nt or $650/mt) DDP loaded truck in US Gulf ports, respectively.
Sources tell SteelOrbis that import wire rod buyers are likely to accept higher prices, especially in light of uptrending US domestic wire rod prices. While market sources don’t expect the full $2.25 cwt. ($45/nt or $50/mt) price increase announced by mills this week to go through, US domestic wire rod prices are still slated to trend up.