US wire rod mills shoot for sharp price increase

Wednesday, 15 August 2012 02:49:02 (GMT+3)   |  

While US domestic mills' response to the $80/long ton increase in shredded scrap prices has been rather moderated for other long products, mills announced a $4.00 cwt. ($88/mt or $80/nt) transaction price increase for wire rod, effective with shipments in September.  Considering that scrap prices are predicted to rise again in September (although not as dramatically), wire rod mills are expecting to get at least half of the announced increase, if not more; but with demand still relatively weak in the US wire rod market, sources tell SteelOrbis that mills will realistically get around $1.50 cwt. ($33/mt or $30/nt) of it.  Nevertheless, mills are already quoting the full increase, and actually getting about $1.00 cwt. ($22/mt or $20/nt) of it, bringing spot prices into the range of $33.00-$34.00 cwt. ($728-$750/mt or $660-$680/nt) ex-mill.

As for imports, the Turkish wire rod market is unresponsive to the US domestic trend so far.  Offer prices are still in the range of $32.00-$33.00 cwt. ($705-$728/mt or $640-$660/nt) DDP loaded truck in US Gulf ports, and Turkish mills aren't expected to raise prices much, if at all, considering how low demand is for even that range.  Chinese mills, meanwhile, are waiting out the low demand market, and have not issued any new offers from the current range of $31.50-$32.50 cwt. ($694-$717/mt or $630-$650/nt) DDP loaded truck in US Gulf ports.

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