After US domestic shredded scrap prices settled $30/gt lower this month, US domestic wire rod prices are following the trend. Sources tell SteelOrbis that lower scrap prices combined with lackluster demand have left US wire rod mills with “little to no leverage” with buyers, who are already able to negotiate prices down by about $1.00 cwt. ($20/nt or $22/mt) from prices reported last week.
Spot prices for US domestic wire rod are now in the range of $35.00-$36.00 cwt. ($700-$720/nt or $772-$794/mt) ex-mill. Prices are susceptible to further softening, sources say, with some speculating that they could eventually return to pre-Section 232 levels. In early March 2018, before the tariffs were announced, US domestic wire rod spot prices ranged from $33.75-$34.25 cwt. ($675-$685/nt or $744-$755/mt) ex-mill. At this time last year, in mid-May 2018, prices had soared to $38.00-$39.50 cwt. ($760-$790/nt or $838-$871/mt) ex-mill.