Although some in the US domestic wire rod market believed scrap dropping $60/ton this month would put some pressure on wire rod prices, a mill-announced price increase this week has shifted market sentiment. Nucor’s $1.00 cwt. ($22/mt or $20/nt) increase is seen more as a pre-emptive move against deals after scrap prices dropped, but sources also say that wire rod supply in the US is still tight enough for Nucor to “feel comfortable” raising prices.
The increase amount will likely absorb somewhat in the market, but not “across the board,” sources say. For now, the general spot price range for US domestic wire rod is unchanged week-on-week at $55.00-$57.00 cwt. ($1,213-$1,257/mt or $1,100-$1,140/nt) ex-mill, although the range could shift slightly upward by next week.