Although many in the US domestic wire rod market are still skeptical of US mills pushing through the full $5.00 cwt. ($100/nt or $110/mt) in combined March price increases, a shortage in domestic wire rod supplies has allowed further firming of the average spot price range. The top end of the range has widened by $0.50 cwt. ($10/nt or $11/mt) in the last week, bringing US domestic wire rod spot prices into the range of $38.00-$39.50 cwt. ($760-$790/nt or $838-$871/mt) ex-mill.
The supply shortage has also reportedly eroded some of the large-tonnage order deals reported last week, with US mills continuing to “get every last penny” before the uptrend “hits a wall.” Specifically, renegotiated deals with countries seeking exemptions to the Section 232 tariffs, which could happen as soon as May 1, could herald the return of imports to the market under a quota system. But even if sources of import wire rod are directed to reduce the amount of wire rod sent to the US, sources say import prices that are exempt from the 25 percent tariff will be a “cold splash of water in the face” of the US wire rod price trend.