As predicted last week, the mill-announced $1.00 cwt. ($22/mt or $20/nt) price increase for wire rod is being seen more as a tactic to prevent spot prices from dropping in light of severe scrap price declines this month. Sources report that the increase has not absorbed into the market, due to both buyer reluctance to pay higher prices, and mills’ unwillingness to push too hard for the increase.
Sources say mills don’t want to “undo a strong market by pushing too far,” and because the general consensus appears to be that higher prices are not realistic right now, US domestic wire rod prices are expected to continue trending in the range of $55.00-$57.00 cwt. ($1,213-$1,257/mt or $1,100-$1,140/nt) ex-mill, which is unchanged in the last week.