After seeing the high end of the general spot range for US domestic wire rod chip away over the last few weeks, US wire rod mills are hoping that at least one factor in the downtrend will stabilize. Aside from lackluster demand and still-decent availability of Chinese imports at the port (nearly 65,000 mt arrived in May, according to US import data, while June levels are drying up), scrap prices have been weak throughout the quarter. However, sources tell SteelOrbis that June could very well represent a bottom for the US scrap market, and if prices turn around this summer, wire rod mills might consider another attempt at a price increase in the fall. Of course, that’s not to say further wire rod price erosion isn’t possible in a neutral scrap market, if prices end up moving sideways instead. Until then, US domestic wire rod prices remain in the range of $32.50-$33.50 cwt. ($650-$670/nt or $717-$739/mt) ex-mill, with reports of certain customers booking closer to $32.00 cwt. ($640/nt or $705/mt).
As for imports, Turkey’s relative resurgence in the US import wire rod market in the absence of new Chinese orders is already apparent, with just over 22,000 mt of Turkish wire rod arriving in the US so far in June. Offer prices, however, are hovering in the range of $32.00-$33.00 cwt. ($640-$660/nt or $705-$727/mt) DDP loaded truck in US Gulf ports, but that could change by next week depending on how much inquiry activity takes place in response to lower prices on the CFR level.