Although shredded scrap prices took a dramatic plunge this month (dropping $50-$60/lt depending on region), US wire rod mills were expected to temper the raw material tumble with a much more modest transaction price decrease--most estimates pegged the potential drop around $1.00 cwt. ($22/mt or $20/nt). However, mills announced late last week a slightly more substantial decline, lowering wire rod prices by $1.50 cwt. ($33/mt or $30/nt). Because the decrease is immediate, US domestic wire rod spot prices are now in the range of $34.50-$35.50 cwt. ($761-$782/mt or $690-$710/nt) ex-mill. Further, sources tell SteelOrbis that it might be possible for larger orders to get deals for underneath the general range, considering the scrap price cushion.
Another reason US mills likely went for a deeper transaction price than expected is to stay competitive with import offers. Traders report that while the general offer price ranges for Turkish and Chinese wire rod have remained unchanged in the last week, mills from both foreign sources are willing to negotiate downward if reasonable offers are made. If this trend continues, sources say, import wire rod prices could drop overall in the coming weeks. For now, however, Turkish wire rod offer prices are for the most part stable at $33.75-$34.75 cwt. ($744-$766/mt or $675-$695/nt) DDP loaded truck in US Gulf ports, while Chinese offer prices are still in the range of $33.50-$34.50 cwt. ($739-$761/mt or $670-$690/nt) DDP loaded truck in US Gulf ports.