US wire rod market – June price increases take effect

Domestic wire rod mills' June increases have been broadly accepted in the market, and offers in the market have increased by about $1.00 cwt. ($22 /mt or $20 /nt) since last week. Domestic wire rod offers now 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. These numbers represent the average offers in the market, although big buyers are still getting offers slightly under these prices, and smaller buyers are paying slightly more. The pricing trend for domestic wire rod is still strongly up, though it remains to be seen how much of domestic mills' July increases will be realized. Import prices have also increased since last week, rising by approximately $0.25 cwt. ($5.50 /mt or $5 /nt). Import offers in the market now 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. The import pricing trend is still strongly up because of strong demand and short supplies, and the Chinese VAT decision, which is expected to push up Chinese prices in July, is still pending.