Although many in the US domestic wire rod market said buyers had “little incentive” to accept another mill price increase after scrap prices moved sideways this month, the probability of an increase was still strong considering the success of the last mill increase. However, sources tell SteelOrbis that despite the steeper-than-expected price hike announced earlier this week, spot prices haven’t moved yet.
The latest $2.00 cwt. ($40/nt or $44/mt) price hike for shipments as of October 2 is “quite a jump,” one source said, from the previous—and ultimately successful—$0.50 cwt. ($10/nt or $11/mt) price increase. And while the increase isn’t backed by higher scrap prices, one mill cited in its increase letter the global graphite electrode shortage and resulting high input prices. Still, sources tell SteelOrbis that acceptance of the increase isn’t guaranteed.
As such, US domestic wire rod prices are expected to remain in the unchanged range of $30.00-$31.00 cwt. ($600-$620/nt or $661-$683/mt) ex-mill in the near-term. Once October approaches, sources say prospects for the mill increase will become clearer.