Sources tell SteelOrbis that there has been a noticeable uptick in the demand trend for the US domestic wire rod market, although purchasing activity has not quite caught up. Some attribute to increased interest to the slight rise in US domestic scrap prices this month, speculating that US wire rod mills could use the scrap trend to justify firmer wire rod prices in the spot market.
Still, import wire rod arrivals continue to represent a headwind for US mills, as many import sources are still able to compete despite being subject to 25 percent Section 232 tariffs. The only advantage US mills have against imports is the relative stability and certainty in the market—many import buyers report the sustained stress of knowing a shipment on the water could be subject to higher tariffs “on a whim,” pointing to Turkey’s 50 percent tariffs announced in August.
As buyers tend to prefer the US domestic market over future arrivals for the time being, US domestic wire rod prices could see firming in the near-term. For now, at least, spot prices are stable in the range of $39.00-$40.00 cwt. ($860-$882/mt or $780-$800/nt) ex-mill.