Sources tell SteelOrbis that “not even a fraction” of the $1.50 cwt. ($30/nt or $33/mt) price increase announced earlier this month has absorbed into the US domestic wire rod market, although many suspect that raising prices was not the primary objective of the announcement. Instead, the price push was intended to prevent spot prices from eroding—an objective that has found some success.
Demand in the US wire rod market remains steady, although some sources say the market is not “as strong as it should be.” Purchasing activity is expected to drop off for the remainder of the year due to the holidays, and expectations for the first quarter of 2019 remain unclear, primarily due to continued import uncertainty.
As such, US domestic wire rod spot prices are expected to remain in the range of $39.00-$40.00 cwt. ($860-$882/mt or $780-$800/nt) ex-mill, a level that is unchanged in the last week.