Although sources in the US domestic wire rod market predicted last week that mills would continue pushing through the remainder of their combined $5.00 cwt. ($100/nt or $110/mt) in March price increases, expectations have shifted and some sources believe wire rod prices could be near their peak.
Part of the shifted expectations revolve around the US domestic scrap market, which settled lower than earlier predictions for this month and is expected to move sideways to slightly down in May. Without the backing of higher raw material costs and uncertainty still dominating the import wire rod market, sources say the chances of the full $5.00 cwt. in wire rod price increases absorbing into the market are slim.
This week, however, US domestic wire rod edged up $0.50 cwt. ($10/nt or $11/mt) on the high end of the price range as mills continue to “squeeze every last penny while they can.” Spot prices now around $38.00-$39.00 cwt. ($760-$780/nt or $838-$860/mt) ex-mill. Sources say mills are trying to “phase out” deals for large tonnage orders, although some discounted transactions have still been heard closer to $36.00 cwt. ($720/nt or $794/mt) ex-mill.