US domestic wire rod prices are expected to continue their stable trend in the near term, especially after one major mill issued a rare announcement this week stating that current transaction prices will sustain for May shipments.
The letter from Nucor took some sources by surprise—one source said the market was just starting to “heat up” due to an increase in domestic demand caused by some delayed import shipments. However, others point to US domestic scrap trends as an explanation—while April scrap prices were initially predicted to rise again, shredded scrap prices settled at sideways and early indications are pointing to a downtrend in prices next month. One source speculated that is the true reason behind the announcement: to let customers know prices will not decline even if scrap prices drop.
Whatever the reason behind the announcement, sources say it’s “a good bet” that US domestic wire rod prices will continue trending in the range of $64.00-$68.00 cwt. ($1,411-$1,499/mt or $1,280-$1,360/nt) ex-mill in the near-term.