US wire rod prices soften as predicted

Wednesday, 25 July 2012 02:51:00 (GMT+3)   |  
       

In line with all other US domestic long product prices, wire rod transaction prices decreased immediately late last week, starting with Gerdau's announcement of a $1.50 cwt. ($33/mt or $30/nt) decline.  However, sources tell SteelOrbis that not all mills are on board with that deep of a decrease, and some are quietly telling customers that prices will only drop by $1.00 cwt. ($22/mt or $20/nt).  Therefore, until customers put more pressure on mills to match prices with current weak demand, most spot prices in the US domestic wire rod market will be in the range of $32.00-$33.00 cwt. ($705-$728/mt or $640-$660/nt) ex-mill, comprising a $1.00 drop from last week.

The import market, on the other hand, was relatively quiet in the last week, with prices from Turkey and China remaining neutral.  Traders tell SteelOrbis that Turkish wire rod offers are under pressure to drop, but Turkish mills are "toughing it out" and holding on to offer prices in the range of $32.00-$33.00 cwt. ($705-$728/mt or $640-$660/nt) DDP loaded truck in US Gulf ports.  Chinese wire rod offers, meanwhile, are still in the range of $31.50-$32.50 cwt. ($694-$717/mt or $630-$650/nt) DDP loaded truck in US Gulf ports, but sources say that price breaks might be available for certain sizes and large-tonnage orders.


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