Low demand and soft scrap prices have put continued pressure on US domestic wire rod prices this month, dipping slightly on a weekly basis. This week shows a continuation of that trend, with spot prices declining by another $0.50 cwt. ($5/nt or $5.50/mt) into the range of $33.50-$34.50 cwt. ($670-$690/nt or $739-$761/mt) ex-mill.
However, sources say US domestic wire rod spot prices might level out soon. The latest trade news regarding the elimination of Section 232 tariffs on Canada and Mexico, and the reduction of tariffs on Turkey to 25 percent, is not likely to affect the US import wire rod market directly, as Mexico and Turkey are still subject to existing AD/CVD margins. But sources say the news will have an indirect effect on the scrap market, which could stabilize US scrap prices and allow US wire rod mills to maintain spot price levels.