US wire rod market – Lukewarm demand, ample supply keep import prices down

Not much has changed in the domestic wire rod market since last week; the pricing trend is still neutral and prices haven't budged. However, there were some movement on the raw materials, namely, auto bundle pricing went up, which could translate to higher scrap prices. Shredded scrap prices may rise about $10 /nt to $15 /nt ($11 /mt to $17 /mt), but this probably won't have too much of an effect on the wire rod market. It may help to keep it stable for a while, but it certainly won't be enough to push wire rod prices up, as demand has softened somewhat. Domestic 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 $30.00 cwt. to $32.00 cwt. ($661 /mt to $705 /mt or $600 /nt to $640 /nt) FOB mill for high carbon. Large buyers continue to negotiate better deals than the above numbers. The pricing trend for import wire rod is still slightly down, and import prices for mesh grade rods are down $0.50 cwt. ($11 /mt or $10 /nt), now ranging from $23.00 cwt. to $24.00 cwt. ($507 /mt to $529 /mt or $460 /nt to $480 /nt) FOB, loaded-truck, in US Gulf ports. Import drawing quality rod prices have decreased by $0.25 cwt. ($5.50 /mt or $5 /nt) since last week, and now range from $25.00 cwt. to $26.00 cwt. ($551 /mt to to $573 /mt or $500 /nt to $520 /nt) FOB, loaded-truck, in US Gulf ports. While most major exporting countries are staying firm, Chinese mills were the main culprit for the price decreases in the last few weeks. There is still some confusion in the market as to the direction that the Chinese wire rod market is moving in. Some Chinese mills are asking for higher prices in the US, while other Chinese mills have cut prices. Even if the Chinese domestic market is giving signs of strengthening, Chinese exporters will have a hard time increasing selling prices in the US, as the North American market is currently not very strong for wire rod. Turkish mills are also trying to hike their wire rod export prices, as their billet and scrap prices have risen. However, like the Chinese mills, Turkish mills will have a hard time raising export prices to the US as long as the American market remains flat.