The US domestic wire rod market continues to face slow demand and high inventory levels, and while most spot prices are still in the range of $37.00-$38.00 cwt. ($740-$760/nt or $816-$838/mt) ex-mill, unchanged in the last week, sources say deals are “absolutely” taking place beneath that range as US domestic wire rod mills compete “ferociously” for orders.
Aside from lagging demand, sources point to the US domestic scrap trend this month as another factor in US domestic wire rod weakness. While initial expectations pointed to a sideways scrap trend in April, the ongoing buy-cycle is indicating a $10-$20/mt drop in shredded scrap prices. Sources say if demand was strong, scrap prices wouldn’t matter, but the decline in scrap prices are expected to place “immense pressure” on US domestic wire rod prices in the near-term.