After dropping continuously in the last few weeks, import Chinese wire rod offer prices to the US have finally stabilized in the range of $29.25-$30.25 cwt. ($645-$667/mt or $585-$605/nt) DDP loaded truck in US Gulf ports. However, traders tell SteelOrbis that the price level has not yet hit bottom, as Chinese mills have indicated to them that further reductions are on the way. As such, order activity is decent, but not robust, as customers wait for Chinese prices to fall further--so far, the potential threat of an antidumping (AD) suit has not deterred them. Turkish wire rod offer prices, meanwhile, are still in the range of $32.00-$33.00 cwt. ($705-$728/mt or $640-$660/nt) DDP loaded truck in US Gulf ports--unchanged from last week--with virtually no hope of securing orders against their Chinese competition. However, if an AD suit against Chinese wire rod moves from the threat stage to the actual implementation stage, US customers will likely turn their attention back to Turkey.
As for the US domestic wire rod market, spot prices are still stable this week in the range of $33.00-$34.00 cwt. ($728-$750/mt or $660-$680/nt) ex-mill, although not much activity has been reported immediately following the Labor Day holiday weekend. While the spot range does not fully represent the full $4.00 cwt. ($88/mt or $80/nt) increase announced for September shipments, sources tell SteelOrbis that mills are less confident that they can get much more considering the trend for scrap this month is no longer pointing upward.