As it became clear just before scrap prices settled that a sideways to barely down trend was more likely than the long-predicted solid downtrend, US domestic wire rod mills immediately began grasping tight to spot prices that were--and for the most part, continue to be--vulnerable to weak demand and attractive import offers. But while there are no expected changes to the current spot range of $33.00-$34.00 cwt. ($728-$750/mt or $660-$680/nt) ex-mill, mills are becoming "compartmentalized" in their approach to booking orders, still offering slight deals to major customers and trying to push the spot range up for smaller customers. Although sources tell SteelOrbis that mills will find limited success at such efforts, the overall result will be at least to keep the spot range from ticking down any further.
However, if import offers from China continue to weaken, US mills might find resistance from larger customers who can afford to hedge buy for the future. Chinese wire rod offers to the US have stabilized in the last week in the range of $28.25-$29.25 cwt. ($623-$645/mt or $565-$585/nt) DDP loaded truck in US Gulf ports, but traders tell SteelOrbis that Chinese mills are still looking for orders and are willing to negotiate. Turkish wire rod offers, meanwhile, are also stable at $30.00-$31.00 cwt. ($661-$683/mt or $600-$620/nt) DDP loaded truck in US Gulf ports. But considering the current preference for Chinese offers, sources say it won't be long before Turkish mills react and, at the very least, become more open to offering select deals.
