US wire market – Domestics and imports stay flat for now

It has been a slow week for the domestic wire rod market, as market prices have not increased to reflect the August hikes announced by domestic mills. Sources say that the mills have unofficially rescinded the $20 /nt increase since no bookings have been completed at these higher levels. While some anticipate that we might still see a small increase for high carbon rods, low carbon prices will most likely not register any upward movement because of steep import competition, combined with the slowing state of the wire business. The pricing trend for domestic wire rods is now neutral. This week, domestic wire rod offers in the market still range from $27.00 cwt. to $28.00 cwt. ($595 /mt to $617 /mt or $540 /nt to $560 /nt) FOB mill for low carbon, and from $29.50 cwt. to $31.50 cwt. ($650 /mt to $694 /mt or $590 /nt to $630 /nt) FOB mill for high carbon. The import pricing trend for wire rod is still slightly down, but this downward movement is most likely more of a dip than a downward spiral. Chinese prices have stopped falling and there is still a small chance that prices might start to rise again slightly. Still, most probably, the market will be affected by the slowing US economy and seasonal softness of the late third and fourth quarters, and we will see further price decay until the end of the year. Mesh grade import offers in the market still range from $24.00 cwt. to $25.00 cwt. ($529 /mt to $551 /mt or $480 /nt to $500 /nt) FOB, loaded-truck, in US Gulf, and industrial quality (drawing) wire is still ranging from $25.75 cwt. to $26.75 cwt. ($568 /mt to $590 /mt or $515 /nt to $535 /nt) FOB, loaded-truck, in US Gulf ports.