Although predictions for strong March scrap prices have sustained in the last week, that optimism has not carried over into the US domestic wire rod market, which is due to implement a $2.25 cwt. ($45/nt or $50/mt) price increase as of March 1. Sources are skeptical of the increase’s chances of absorbing into the market, especially considering the same increase amount failed in early February. Falling scrap prices this month were blamed on the failure, but sources say demand is still a crucial factor—March scrap prices will have to rise “significantly” in order to give US domestic wire rod mills the leverage to push anything through.
At most, sources can see $1.00 cwt. ($20/nt or $22/mt) of the March price increase absorbing into the market, backed by strong scrap prices. But for now, with less than a week to go before the effective date, US domestic wire rod spot prices are still hovering in the range of $28.00-$29.00 cwt. ($560-$580/nt or $615-$637/mt) ex-mill.