Despite a continued lag in previous price increases being absorbed into the US domestic wire rod market, US wire rod mills this week announced a sizeable $2.50 cwt. ($50/nt or $55/mt) price increase effective with all new orders. Sources say the announcement is a “message” from mills to buyers that “prices are going up, whether they like it or not,” and as such, spot prices have seen a boost so far this week.
US domestic wire rod spot prices are now in the range of $36.25-$36.75 cwt. ($725-$735/nt or $799-$810/mt) ex-mill, reflecting a $1.50 cwt. ($30/nt or $33/mt) increase in the last week. This leaves only $0.25 cwt. ($5/nt or $5.50/mt) remaining of the $3.25 cwt. ($65/nt or $72/mt) in combined price increase announcements from last month. As for the prospects of the latest announced price increase, sources say “prices will get there, eventually,” considering US wire rod mills hold all the leverage now that imports are priced out of the market and scrap prices are on the rise.