Although import wire rod offer prices to the US have dropped in the last week, traders tell SteelOrbis that US buyers are holding off making offshore commitments until the market hits bottom. Wire rod offers from China fell $1.50 cwt. ($33/mt or $30/nt), bringing prices into the range of $32.00-$33.00 cwt. ($705-$728/mt or $640-$660/nt) DDP loaded truck in US Gulf ports; while Turkish prices dropped $0.75 cwt. ($17/mt or $15/nt) in the last week, lowering the general range to $33.00-$34.00 cwt. ($728-$750/mt or $660-$680/nt) DDP loaded truck in US Gulf ports. Although demand for wire rod in the US is not spectacular, sources say buyers are still checking in with traders on a regular basis and waiting for import prices to hit an attractive enough level--according to sources, prices are expected to hit bottom sometime in July, and depending on how large the margin is between imports and domestic spot prices at that time, US buyers might make strategic stock-up purchases to come in before domestic prices traditionally rise in late fall/early winter.
For now, however, domestic wire rod spot prices are on a distinct downtrend. After only dropping transaction prices by approximately half of the shredded scrap price decrease, US wire rod mills have been under pressure to negotiate further downward. Already, spot prices have fallen about $1.00 cwt. ($22/mt or $20/nt) in the last week, moving the general spot range to $33.50-$34.50 cwt. (739-$761/mt or $670-$690/nt) ex-mill. According to sources, demand wasn't strong enough to support such a meager transaction price decrease, and with early speculation of another scrap price drop next month, US domestic wire rod spot prices are likely to keep slipping in the coming weeks.