As predicted last week, a portion of the $1.00 cwt. ($22/mt or $20/nt) price increase announced by US domestic wire rod mills earlier this month has been absorbed into the market, with spot prices rising by $0.50 cwt. ($11/mt or $10/nt) week-on-week. The uptrend is not necessarily based on demand, sources say, but rather “positive sentiment” for the near-future and also the strong possibility that US domestic scrap prices will rise in December.
US domestic wire rod prices are now in the range of $28.50-$29.50 cwt. ($628-$650/mt or $570-$590/nt) ex-mill, although whether the rest of the increase absorbs into the market is still unclear. Activity will be on pause next week as the US celebrates Thanksgiving, but once scrap prices settle early next month, sources say there might be room for more of the increase to push through.