Sources in the US domestic wire rod market still expect a mill price increase announced before the end of the year, but wire rod buyers are firmly against any further increases, with many still struggling to pass higher prices from earlier this year onto customers.
“We’re finally getting to a point of some stability,” one source said, “so the last thing we need are higher prices right now.”
Wire rod buyers also report early signs of lower demand due to higher prices, as purchasing activity has not picked up significantly in the week following the Labor Day holiday, which typically signifies the end of the annual summer slowdown across the steel market in general. While some point to high inventory levels as the main reason behind dampened activity, others worry that the effect of high prices on end users is finally moving upstream. As such, some sources said they are hoping scrap prices decline again this month, which could stave off a wire rod price increase in the near-term.
For now, spot prices are steady this week in the range of $39.50-$40.50 cwt. ($790-$830/nt or $871-$915/mt) ex-mill.