With most US domestic wire rod buyers “settled on inventory” and continuing to face slow demand in the last weeks of summer, the market as a whole is still taking a “breather” with no change in prices or ordering activity.
However, while sources say other long product markets—particularly rebar—are set to resume activity in September, predictions for the wire rod market are not as optimistic. Wire rod inventory levels are expected to last buyers a bit longer, which means they could wait to re-enter the market later in the fall, when a variety of factors might make US domestic wire rod spot prices more vulnerable.
Already, lower scrap prices this month have given wire rod buyers leverage over mills, although the overall weak demand has not translated that leverage into overall lower booking prices. For now, US domestic wire rod prices are still in the range of $39.50-$40.50 cwt. ($790-$830/nt or $871-$915/mt) ex-mill.