While predictions for June shredded scrap prices have plummeted in the last week (sources now expect a $40-$50/lt downtrend), US domestic wire rod mills are not expected to drop transaction prices by the full amount. Sources tell SteelOrbis that in the event of such a steep decline in scrap prices, US wire rod spot prices will decrease by at least $1.00 cwt. ($22/mt or $20/nt), but not much more--as usual, mills are determined to not let the market shift too dramatically. For now, spot prices are still, for the most part, in the range of $36.00-$37.00 cwt. ($794-$816/mt or $720-$740/nt) ex-mill, with deals in the range of $0.25-$0.50 cwt. ($5.50-$11/mt or $5-$10/nt) less for an ever-widening swath of customers.
As for imports, traders report that US customers are holding off buying imports for the time being until US domestic scrap prices are settled. For now, Turkish wire rod offer prices are still in the range of $33.75-$34.75 cwt. ($744-$766/mt or $675-$695/nt) DDP loaded truck in US Gulf ports with low interest. Chinese offers, meanwhile, still stand at $33.50-$34.50 cwt. ($739-$761/mt or $670-$690/nt) DDP loaded truck in US Gulf ports, but offer prices from both sources are on a distinct downtrend--the market should reflect lower prices by next week.