After shredded scrap prices soared by over $80/long ton this month, transaction prices for US domestic wire rod are sure to follow. Some sources believe a $2.00 cwt. ($44/mt or $40/nt) price increase is reasonable, while others contend that mills might overinflate prices, by as much as $3.00 cwt. ($66/mt or $60/nt), with the assumption that they won't get all of the increase--negotiating down to $2.25-$2.50 cwt. ($50-$55/mt or $45-$50/nt) above current prices would be better than only asking for $2.00 cwt. more in the first place. Either way, spot prices are stable for the time being, although sources tell SteelOrbis that the lower end of the $32.00-$33.00 cwt. ($705-$728/mt or $640-$660/nt) ex-mill range is probably unavailable.
Import wire rod prices are also trending up, although like US domestic prices, they have not registered any official increase yet. Chinese wire rod offer prices are still in the range of $31.50-$32.50 cwt. ($694-$717/mt or $630-$650/nt) DDP loaded truck in US Gulf ports, although traders say prices could increase by about $1.00 cwt. ($22/mt or $20/nt) by next week. Turkish wire rod offers, on the other hand, are also poised to increase, but US customers are less likely to pay prices much higher than the current range of $32.00-$33.00 cwt. ($705-$728/mt or $640-$660/nt) DDP loaded truck in US Gulf ports when the demand outlook for Q4 (when product ordered now will arrive) isn't that clear.