Although demand is still lackluster in the US domestic wire rod market, the weekly downticks in the spot price range have paused in response to domestic scrap prices settling this week. While many expected another slight downtrend in shredded scrap prices, Midwest numbers didn’t budge from July. Sources say it’s too soon to declare the sideways scrap trend has put an end to further declines in US domestic wire rod prices, but mills are reportedly “heartened” by the trend and could soon use it as an excuse to put a firm bottom on spots.
For now, wire rod spot prices are still ranging from $25.25-$26.25 cwt. ($505-$525/nt or $556-$578/mt) ex-mill. By next week, sources say it should be clear if outlier deals for large customers underneath the range have dried up, but they are already certain that the possibility of an official price decrease—an idea floated before August scrap prices settled—is no longer viable.