Although Nucor announced this week that it will raise US domestic wire rod prices by $1.25 cwt. ($25/nt or $28/mt), effective with all new orders as of Nov. 12, sources tell SteelOrbis that the chances the increase will be absorbed into the market are unlikely.
Demand for wire rod in the US remains extremely lackluster, and although higher raw material costs are likely behind the move, as US domestic scrap prices have increased in the last two months, sources say it’s still a “buyer’s market” and mills will likely face resistance in pushing the increase through. At best, sources say mills might be able to get $0.50 cwt. ($10/nt or $11/nt) in the long run, potentially by December, but the immediate impact of the increase is likely to remain limited to setting a pricing floor and preventing further price erosion in the overall weak market.
For now, US domestic wire rod prices have not changed following the increase announcement, with spot prices still ranging from $28.50-$29.50 cwt. ($628-$650/mt or $570-$590/nt) ex-mill.