New orders for US domestic wire rod are now subject to the full $4.00 cwt. ($88/mt or $80/nt) price increase announced earlier this month, with prices rising another $2.00 cwt. ($44/mt or $40/nt) week-on-week. Spot prices are now in the range of $49.00-$51.00 cwt. ($1,080-$1,124/mt or $980-$1,020/nt) ex-mill, and while the market continues to exhibit strong demand and tight supply, some sources are predicting current price levels might be the peak.
Sources say buyers are starting to resist what they consider “unreasonably inflated” wire rod prices, although few have reportedly been able to score deals with mills. If anything, some buyers are obtaining discounts on delivery terms, while the actual quote price for wire rod remains high. While some sources do not expect any further mill price increases, others caution against assuming what mills are capable of during overall unprecedented steel price surges.