Upward momentum in the US domestic wire rod market has stalled in the last week, with spot prices remaining in the range of $38.00-$39.50 cwt. ($760-$790/nt or $838-$871/mt) ex-mill. This range reflects an increase of $1.50 cwt ($30/nt or $33/mt) on the low end and $2.50 ($50/nt or $55/mt) on the high end of the range reported last month, before US wire rod mills announced two price increases for a combined $5.00 cwt. ($100/nt or $110/mt).
Sources tell SteelOrbis that the chances of the rest of those price increases absorbing into the market are “slim,” especially with US domestic scrap prices projected to soften in May. Uncertainty in the import market, and chances that Section 232 tariffs could be swapped for quotas for several countries, have also halted US wire rod’s price momentum.
However, continued tight supply in the US wire rod market has left mills with some leverage, although sources say while such leverage might be enough to prevent any price erosion in the market, it’s not enough to bump wire rod prices past the desired $40.00 cwt. ($800/nt or $882/mt) ex-mill mark.