Offers for import wire rod to the US from various sources remain mostly stable this week as buyers and sellers are just returning to the market after the holidays. However, sources tell SteelOrbis that offer prices will most likely increase as soon as next week.
One of the main factors supporting higher import prices, other than rising global scrap prices, is the strong upward trend in US domestic wire rod prices. A decent portion of the Jan. 2-effective US domestic price increase has already absorbed into the market, giving US-based traders room to accept higher import offer prices from offshore mills. And once US domestic scrap prices settle sometime within the next week, another large portion of the increase is expected to be absorbed as well.
For now, US import offers are trending stable with solid signs of upward movement in the near term. Offers of imported wire rod in the US domestic market from Germany are still around the level of $31.00 cwt. ($620/nt or $683/mt) DDP loaded truck in US Gulf ports, while imported wire rod in the US domestic market from Egypt is still in the range of $30.50-$31.75 cwt. ($635/nt or $700/mt) DDP loaded truck in US Gulf ports. Additionally, offers from Greece have been heard at slightly above the high end of the Egyptian offer range.