Although demand for wire rod in the US has “marginally improved,” according to sources, many buyers are still holding off on booking import offers until there is more clarity in the market. Today, it was reported that Brazil is seeking a permanent exemption from the Section 232 tariffs in exchange for a quota on steel exports to the US, and Brazil is currently the most significant source of US wire rod imports aside from Canada. Because the average monthly quantity of Brazilian wire rod imports in the US is less than 15,000 mt, a 30 percent decrease in tonnage, for example—which was recently negotiated between the US and South Korea—would not be too detrimental for Brazilian mills and their overall export tonnages. As such, sources are looking forward to a quota deal, primarily for the certainty it would bring to one corner of the market.
As for prices, the last-heard offers for imported wire rod in the US domestic market from Brazil are around $33.00-$35.00 cwt. ($660-$700/nt or $728-$772/mt) DDP loaded truck in US Gulf ports. That price range would likely remain stable if a quota deal is reached, as Brazil is currently under a temporary tariff exemption that expires on May 1.