In a surprise move, US domestic wire rod mills announced a fresh price hike this week, with Nucor announcing a $1.50 cwt. ($33/mt or $30/nt) increase and Evraz announcing a $3.50 cwt. ($77/mt or $70/nt) increase, effective with all new orders. However, sources are “highly skeptical” of the announcements, especially Evraz’s, noting that while the market remains strong, order books are not full enough to justify higher prices at the moment.
Some sources say the increases are likely “preemptive moves” to keep spot prices from falling too fast, as many in the market perceive wire rod prices to have already hit their peak. A downtick in prices is expected, and announcing a price increase is being seen as a strategic tactic to retain some firmness in the market. However, most source agree that US domestic wire rod prices are unlikely to actually rise. As such, wire rod prices remain unchanged week-on-week at $51.00-$52.00 cwt. ($1,124-$1,146/mt or $1,020-$1,040/nt) ex-mill.