US wire rod market skeptical about mill increase rumors

Thursday, 08 August 2019 00:56:45 (GMT+3)   |   San Diego

Despite the persistence of deals in the US domestic wire rod market and a consensus that demand is not strong enough yet to support higher prices, sources have reported to SteelOrbis rumors that US wire rod mills are considering a formal price increase for September. The amount of the price increase would likely be in the range of $1.00 cwt. ($22/mt or $20/nt), corresponding with the $20/mt increase in US domestic scrap prices this month. However, sources are skeptical about the chances of such an increase absorbing into the market.

Aside from tepid demand in the US domestic wire rod market, import offers are still comfortably beneath US spot prices, and sources say import prices could tick down further. Though US mills are reportedly “eager” to stop the slow downtrend in prices, sources say the “best case scenario” for the increase announcement would be setting floor on spot prices. Still, the price increase exists—for now—in rumor status, leaving spot prices stable this week at $31.50-$32.50 cwt. ($694-$717/mt or $630-$650/nt) ex-mill.

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