US wire rod market – Import prices close to peaking

Though the pricing trend for import wire rod is still slightly up, we are starting to see some signs of softening from Chinese mills, and the initial unreasonably high numbers offered earlier in the month are not being discussed any more. With China starting to lose steam, import wire rod numbers will continue to rise slightly, but current offers are close to as high as they are going to get this year. Import offers in the market range from $24.50 cwt. to $25.50 cwt. ($540 /mt to $562 /mt or $490 /nt to $510 /nt) FOB, loaded-truck, in US Gulf ports for low carbon and from $26.00 cwt. to $27.00 cwt. ($572 /mt to $595 /mt or $520 /nt to $540 /nt) for high carbon FOB, loaded-truck, in US Gulf ports. Another interesting condition persists in the wire mesh market. Even though the rod prices have been steadily going up, fierce competition in the mesh industry didn't allow mesh prices to rise as much as its raw materials. This lack of movement in mesh prices puts downward pressure on the rod market, which may prevent mesh-grade rods from rising as high as previously anticipated. However, despite the many competing producers, demand for mesh remains healthy. The domestic rod pricing trend is still up, with domestic prices expected to continue their upward ascent for a while. This week, domestic wire rod offers still range from $27.00 cwt. to $28.00 cwt. ($595 /mt to $617 /mt or $540 /nt to $560 /nt) FOB mill for low carbon, and from $29.50 cwt. to $31.50 cwt. ($650 /mt to $694 /mt or $590 /nt to $630 /nt) FOB mill for high carbon.