The pricing trend for domestic and import wire rod in the US is still strongly up, though it is not clear yet whether or not domestic mills will get the full $40 /nt price increase they announced last week.
Because of the relatively weak demand for wire rod in the US, wire rod buyers are, to some extent, stunned at the $40 /nt ($44 /mt or $2.00 cwt.) price increase that most domestic mills announced for February shipments. But with rising raw material costs and rising import prices as well, it is likely that customers will end up paying most, if not all of it.
At present, it is too early to tell how much of the increase will go through, though mills say that business has picked up some, and some mills say that customers are on allocation. Mills will honor some lower priced offers, however, from some high volume buyers who struck deals before the price increase was announced.
For now, most domestic low carbon rod offers continue to range from $30.50 cwt. to $31.50 cwt. ($672 /mt to $694 /mt or $610 /nt to $630 /nt) FOB mill, while high carbon offers range from $33.00 cwt. to $34.00 cwt. ($728 /mt to $750 /mt or $660 /nt to $680 /nt) FOB mill.
On the import side, there are very few new offers available. China is still not offering due to their strong home market and also because indications of a January 1 increase in the export tax for wire rods are becoming more pronounced. There are also very few new offers from Turkey, as the strengthening home and regional markets are willing to pay higher prices than the US. As for drawing quality offers, the usual import sources from the Caribbean and South America are currently offering most of their tons to other markets.
Of the available offers (most are from Northern Europe or Turkey), import mesh quality rod offers for the US range from $31.50 cwt. to $32.50 cwt. ($694 /mt to $717 /mt or $630 /nt to $650 /nt) FOB, loaded truck, in US Gulf ports while drawing quality offers range from $33.25 to $34.25 cwt. ($733 /mt to $755 /mt or $665 /nt to $685 /nt) FOB, loaded truck, in US Gulf ports.