Although demand for wire rod in the US is “nowhere near robust,” the market has followed other steel products in a sweeping price uptrend, resulting in a surging $4.75-$5.25 cwt. ($105-$116/mt or $95-$105/nt) price increase announced last week. The immediate effect on spot prices was a lift of around $2.00-$2.50 cwt. ($44-$50/mt or $40-$50/nt), and prices have continued to rise since then. This week, US wire rod offers are up $0.50 cwt. ($11/mt or $10/nt), with spot prices now in the range of $31.50-$33.00 cwt. ($694-$728/mt or $630-$660/nt) ex-mill.
The rest of the increase may or may not go through until January, according to sources, who say the market is expected to get quiet in the coming weeks due to the holidays. However, some sources speculate that mills will announce another price increase in January if scrap prices rise again as expected, so buyers are being advised to place orders sooner rather than later.