While demand remains strong in the US domestic wire rod market, sources were expecting price stability for the remainder of the year, and many were caught off guard by Nucor’s announcement this week that it would raise wire rod price by $4.00 cwt. ($88/mt or $80/nt), effective with all new orders. Sources tell SteelOrbis that while some of the increase will go through, it is “highly unlikely” mills will see the full amount absorbed into spot prices, despite the fact that US scrap prices increased this month much more than predicted.
Sources also point out that the increase seems to come at a time when the “pendulum is swinging back” for steel prices in general; many believe the overall steel market has seen its peak, and the latest wire rod increase could be an attempt to slow the downward drift of prices for the remainder of the quarter. For now, US domestic wire rod spot prices are in the same range as last week, $53.00-$56.00 ($1,168-$1,235/mt or $1,060-$1,120/nt) ex-mill, as buyers weigh their material demands with how much they’re willing to pay for it.