Sources tell SteelOrbis that the US domestic wire rod market may have “crested” with the most recent price increase. The $5.50 cwt. ($121/mt or $110/nt) increase announced in mid-January was partially but not fully absorbed, and now that US domestic scrap prices are expected to drop by around $50/ton next month, resistance from wire buyers indicates wire rod spot prices have most likely peaked.
However, sources report that US wire rod mills are “insistent” that a drop in scrap prices does not justify lower wire rod prices because demand is so strong, and they are reportedly reluctant to offer deals. Even so, some buyers have reported quotes of around $0.50 cwt. ($11/mt or $10/nt) less than quotes offered last week, which means wire rod spot prices could see gradual downticks soon. For now, most spot prices continue to range from $39.00-$40.00 cwt. ($860-$882/mt or $780-$800/nt) ex-mill, but if deals become more widespread the range could shift downward by next week.