Although actual bookings for US import wire rod from Turkey are not robust, already-weak prices offers have dropped in the last week, with traders predicting more decreases to come. Turkish mills reportedly accepted quotes from US traders for around $5/mt less on the CFR level, and because the downtrend expected to continue with similarly modest drops, traders are keeping sales prices in the US in the range of $25.50-$26.50 cwt. ($510-$530/nt or $562-$584/mt) DDP loaded truck in US Gulf ports this week.
US domestic wire rod mills aren't that concerned, according to sources, because the margin between import offers and US domestic spot prices in the range of $27.00-$28.00 cwt. ($540-$560/nt or $595-$617/mt) ex-mill is not wide enough and demand is not strong enough for slightly-cheaper import offers to make a dent in their own order activity. Sources tell SteelOrbis that the remainder of the $1.00 cwt. ($20/nt or $22/mt) June wire rod increase has a decent chance of absorbing into the market by the first of next month, but prospects for July's $1.50 cwt. ($30/nt or $33/mt) increase are still dim.