Although US-based traders report hearing higher offers from offshore wire rod producers this week, sources tell SteelOrbis that lackluster inquiry activity has left sales prices intact this week. Turkish offers of imported wire rod in the US domestic market are now ranging from $27.50-$28.50 cwt. ($550-$570/nt or $606-$628/mt) DDP loaded truck in US Gulf ports, with Brazilian offers well over $2.50 cwt. ($50/nt or $55/mt) higher. As import offers creep closer to US domestic wire rod prices, sources say interest in future arrivals ranks lower than interest in positions at US ports, although availability is dwindling.
According to the latest US import data, wire rod import permits for this month (as of Sept. 12) total 33,885 mt—far below August’s import permit total of 105,292 mt and July’s census data import total of 142,104 mt. Offers from new sources of US import wire rod that were not named in the ongoing 10-nation AD/CVD investigation are expected to emerge throughout the rest of the year, but until alternatives reach a certain level of reliability, sources say wire drawers in the US will continue to “feel the squeeze” of relying on US domestic mills for supply, especially when several US mills have downstream wire drawing operations that are in direct competition.