Although demand for wire rod in the US remains “very weak,” sources tell SteelOrbis that US domestic wire rod prices are generally stable this week as supply remains tight. In addition to lower production rates at US wire rod mills, two major wire rod mills are not currently operating: Liberty Steel’s Georgetown plant has been idled amid the Covid-19 pandemic, while Oklahoma Steel & Wire was severely damaged in a tornado last week. Additionally, US scrap prices are forecasted to rise in May, and while “virtually no one expects prices to rise as well,” one source said, the scrap trend is expected to help US wire rod prices from falling much further.
Currently, US domestic wire rod prices are unchanged week-on-week at $28.50-$30.00 cwt. ($628-$661/mt or $570-$600/nt) ex-mill.
As for the import market, sources say demand for wire rod imports remains “even lower than domestic demand,” although deals are reportedly available for “serious buyers” below the general offer price range of $28.50-$29.50 cwt. ($628-$650/mt or $570-$590/nt) DDP loaded truck in US Gulf ports for wire rod from Germany, which is down $1.00 cwt. ($22/mt or $20/nt) in the last week.