As Turkish wire rod import prices to the US seem to be pointing downward, there are rumblings that Chinese wire rod offers could soon reverse course upward in the near future. Soft long product prices in the Turkish domestic market have spilled over to their export offers, and even though US traders report a continuing downtrend in Turkish offers, sales prices in the US have not changed in the last week, still standing at $31.50-$32.50 cwt. ($694-$717/mt or $630-$650/nt) DDP loaded truck in US Gulf ports. Part of the problem, according to sources, is that Turkish mills are "swimming against the stream" in regards to Chinese competition, and until Chinese offer prices start to increase (which many think will, based on a recently-passed stimulus program in China), demand for Turkish wire rod in the US will remain low. For now, Chinese offer prices are still in the range of $29.25-$30.25 cwt. ($645-$667/mt or $585-$605/nt) DDP loaded truck in US Gulf ports--unchanged from last week.
On the domestic front, US wire rod mills have not budged from the general spot range of $33.00-$34.00 cwt. ($728-$750/mt or $660-$680/nt) ex-mill, indicating that they do not intend to follow this month's scrap price decline. However, sources report that large customers are likely booking orders for up to $0.50 cwt. ($11/mt or $10/nt) below the low end, while smaller customers are finding their transaction prices at the very tip of the upper range, if not slightly above. But with expectations spreading of another scrap downtrend next month, sources say mills might be forced to sweep up much of the discounting, if not lower prices overall.