Demand for US domestic wire rod remains strong, and sources report that the market is tightening and higher prices are on the horizon. Now that US domestic scrap prices are predicted to possibly rise by up to $50/ton this month, sources say wire rod prices will be higher as of next week, with or without an official mill price increase announcement.
While some sources predict wire rod prices will increase by at least $1.50 cwt. ($33/mt or $30/nt), others say a $2.50 cwt. ($55/mt or $50/nt) increase is more likely, and unlike previous attempts by US wire rod mills to raise prices “unreasonably high” that fail through buyer resistance, sources say this time around, “the market will accept whatever mills dish out.”
Already, US domestic wire rod prices are drifted upward due to a lack of available deals. Spot prices are now in the range of $39.00-$40.00 cwt. ($860-$882/mt or $780-$800/nt) ex-mill, up $0.50 ($11/mt or $10/nt) in the last week.