Demand for US domestic wire rod remains muted, which left US wire rod prices vulnerable leading up to US domestic scrap prices settling this month. With a confirmed $20/mt drop in Midwest shredded scrap prices as of today, sources tell SteelOrbis that US wire rod prices will “almost definitely” drop as a result. So far, the Fourth of July holiday has kept the market quiet, but by next week sources expect to start seeing lower offers in the market.
The last reported spot prices for US domestic wire rod were in a wide range from $26.00 cwt. ($573/mt or $520/nt) ex-mill for special deals, with a top end of $28.50 cwt. ($628/mt or $570/nt) ex-mill.
Sources are also discussing the potential impact of a newly-launched AD/CVD investigation into wire mesh imports from Mexico. Preliminary determinations are expected in mid-August, and sources say the impact of eventual duties will depend on the “overall economic situation” in the future. Currently, “Buy American” restrictions prevent imported wire mesh from being used in federal construction projects, with most imported product used in private construction projects. If the private construction sector continues to chug along despite the pandemic, duties on imported mesh could boost prices in the domestic mesh, and thus the domestic wire rod market. However, sources are quick to note that “no one knows what will be happening with the pandemic and the economy” by the time final duties are announced.