As predicted last week, the rise in US domestic scrap prices has led to an increase in US domestic wire rod prices. US shredded scrap prices settled up $20/mt as expected, pushing up wire rod prices even before one US mill issued a wire rod price increase announcement earlier this week. But with Nucor’s $2.00 cwt. ($44/mt or $40/nt) increase, which other domestic producers are expected to follow, wire rod spot prices are up even more.
This week, US domestic wire rod spot prices are trending at $43.50-$44.50 cwt. ($959-$981/mt or $870-$890/nt) ex-mill, and sources say prices have room to grow. On the other hand, some sources say that considering the year-on-year price difference for US domestic wire rod is now around $15.00 cwt. (331/mt or $300/nt) up versus mid-May 2020, “there has to be a ceiling at some point,” increasing uncertainty about how long the price uptrend will last.