Although most US domestic wire rod mills quickly followed a strong scrap uptrend with a $1.75 cwt. ($39/mt or $35/nt) transaction price increase last week (Nucor is pushing for slightly more), customers have been cautious in their reaction. With expectations of scrap moving sideways or slightly down next month, wire buyers are "living on inventory" and "scrounging for low-priced import positions to fulfill inventory holes" according to sources, rather than accepting higher domestic prices. Mills are reportedly already asking for about $1.50 cwt. ($33/mt or $30/nt) of the increase (which goes into effect with shipments after April 1), but that does not mean that general spot prices have moved up into the range of $34.00-$35.00 cwt. ($750-$772/mt or $680-$700/mt) ex-mill. It also doesn't mean that spot prices are in last week's range of $32.50-$33.50 cwt. ($716-$739/mt or $650-$670/nt) ex-mill either, as mills are trying to remain firm with their new offers even though few are biting.
In contrast, import wire rod prices in the US are slipping. Turkish wire rod offer prices slipped in the last week by about $1.00 cwt. ($22/mt or $20/nt), into the range of $30.50-$31.50 cwt. ($672-$694/mt or $610-$630/nt) DDP loaded truck in US Gulf ports. Chinese offers dropped more moderately, by only $0.50 cwt. ($11/mt or $10/nt) in the last week, bringing prices into the range of $30.00-$31.00 cwt. ($661-$683/mt or $600-$620/nt) DDP loaded truck in US Gulf ports. Traders report more interest in Chinese wire rod over Turkish product; but then again, sources indicate that Turkish mills are focusing more on their rebar exports to the US instead of wire rod, and have thus not been aggressive with their asking prices.