As expected, US domestic wire rod spot prices are continue to trend downward on lower scrap prices. This week, spot prices have declined by approximately $1.00 cwt. ($20/nt or $22/mt), putting US domestic spot prices in the range of $34.00-$35.00 cwt. ($680-$700/nt or $750-$772/mt) ex-mill. Sources say spot prices are likely to drop further, bringing them closer to pre-Section 232 prices.
Sources are also questioning the factors behind the current soft demand in the US domestic wire rod market. Buyers reportedly overbought in the last quarter of 2018, but sources say they should have worked through that inventory by now. Unusually wet spring conditions in many areas of the US have also had an impact, sources say, but one source noted, “with the US economy doing so well, we shouldn’t be hurting for orders. And yet we are.”