Although US domestic wire rod spot prices saw an immediate $1.00 cwt. ($22/mt or $20/nt) bump after mills announced a startling $4.00 cwt. ($88/mt or $80/nt) transaction price increase last week, sources tell SteelOrbis that mills will probably not get much more than that. However, because scrap prices are expected to stay strong through next month, another scrap uptrend (even one not as dramatic as August's) could mean that wire rod mills will slowly but surely push up spot prices by at least half of the $4.00 cwt. increase, if not more, throughout September. For now, spot prices remain unchanged from last week in the range of $33.00-$34.00 cwt. ($728-$750/mt or $660-$680/nt) ex-mill.
The import market, on the other hand, is on a distinct softening trend. Turkish wire rod prices are under pressure to drop from decreasing scrap prices in their domestic market, although the trend has not yet translated into sales prices in the US. Turkish wire rod prices are still in the range of $32.00-$33.00 cwt. ($705-$728/mt or $640-$660/nt) DDP loaded truck in US Gulf ports--unchanged from last week. Meanwhile, the Chinese wire rod market is also facing general softness and a lack of orders, and offer prices have subsequently declined by $1.50 cwt. ($33/mt or $30/nt) in the last week, bringing prices into the range of $30.00-$31.00 cwt. ($661-$683/mt or $600-$620/nt) DDP loaded truck in US Gulf ports.