Although shredded scrap prices declined by $25-$30/long ton this month, sources tell SteelOrbis that US domestic wire rod mills will most likely hold off on announcing even a moderate price decrease in an effort to keep transaction prices level for the remainder of this month. Because mills only pushed through $1.00 cwt. ($22/mt or $20/nt) of the $4.00 cwt. ($88/mt or $80/nt) increase they announced for September shipments, they would, in effect, officially let go of the $3.00 cwt. ($66/mt or $60/nt) they failed to get. However, with scrap prices soft, customers are expected to attempt to negotiate prices downward. Until the success of such a move is clear, spot prices will likely remain in the range of $33.00-$34.00 cwt. ($728-$750/mt or $660-$680/nt) ex-mill.
As for imports, Turkish wire rod offer prices in the US have started to soften after mills in Turkey lowered their offers last week; prices now range from $31.50-$32.50 cwt. ($694-$717/mt or $630-$650/nt) DDP loaded truck in US Gulf ports--down $0.50 cwt. ($11/mt or $10/nt) from last week. Chinese wire rod offer prices, meanwhile, are steady at $29.25-$30.25 cwt. ($645-$667/mt or $585-$605/nt) DDP loaded truck in US Gulf ports--unchanged from last week--although sources say customers are becoming wary of a potential antidumping suit, and are being more cautious with their orders from China.