While US domestic wire rod mills have struggled to pass through recent price increases, sources tell SteelOrbis that mills could soon get a “boost in leverage” if sweeping steel tariffs are implemented in regards to the Section 232 investigation. Import wire rod offers have already been depressed since final AD/CVD margins were levied against 10 wire rod producing countries, and after US DOC Secretary Wilbur Ross publicly released his trade remedy options to the president last week, sources say offers have dried up completely because offshore producers are demanding importers preemptively assume the risk of additional tariffs.
With import competition virtually nonexistent at the moment, US wire rod mills are reportedly trying to aggressively pursue both the Feb. 1-effective $2.25 cwt. ($45/nt or $50/mt) price increase—of which only $0.25 cwt. ($5/nt or $5.50/mt) has been absorbed in the market—and the $1.00 cwt. ($20/nt or $22/mt) price increase which was set to go into effect Feb. 9. “Customers don’t have a choice anymore,” said one source, adding that mills will get even more aggressive as demand picks up in the spring construction season.
Already, spot prices for US domestic wire rod are up another $0.25 cwt. this week, now ranging from $33.75-$34.25 cwt. ($675-$685/nt or $744-$755/mt) ex-mill, and gradual upticks are expected to continue.