Despite the general consensus in the US domestic wire rod market that mills are “doing just fine,” downstream wire rod buyers continue to report resistance to high spot market prices, with some predicting a downtrend in the near future. Demand for wire rod is not exactly robust, sources say, and lower scrap costs for two consecutive months along with import arrivals that have not dwindled as much as US mills would prefer could soon have an eroding effect on domestic wire rod prices.
For now, US domestic wire rod spot prices are steady week-on-week in the range of $39.00-$40.00 cwt. ($860-$882/mt or $780-$800/nt) ex-mill, after falling slightly in last week’s report. Sources say that further minor downticks are likely, although if spot levels seem to get too low, US mills might move to firm up prices with an official price increase.