US domestic wire rod mills hoping July scrap prices would help them gain traction with the $1.00 cwt. ($20/nt or $22/mt) price increase announced in mid-June were reportedly spurned by a mostly-sideways trend at the conclusion of the monthly buy-cycle. Sources tell SteelOrbis the lack of raw material leverage has left mills “disappointed,” but with results in the Section 232 investigation still to come, sources say “it’s not over yet.”
New expectations for the announcement of Section 232 results have been pushed back to August as many foreign trading partners and US domestic industries that rely on exports have expressed significant concern about potential wide-sweeping tariffs on steel. US agriculture firms in particular are worried about retaliatory trade policies that could harm their exports, and many specific industry associations—including those representing apple, dairy, and cattle farmers, along with whiskey manufacturers—have released public statements urging the US DOC to reconsider.
US domestic wire rod spot prices are expected to trend neutral until the results are released, in the range of $29.50-$30.50 cwt. ($590-$610/nt or $650-$672/mt) ex-mill.