Although many within the US domestic wire rod market remain skeptical that the recently announced $1.25 cwt. ($25/nt or $28/mt) price increase will be fully absorbed into spot prices, sources say it is still a “seller’s market” and mills are pushing to get all transactions, including deals for large-tonnage buyers, above the $40.00 cwt. ($800/nt or $882/mt) ex-mill mark.
As such, US domestic wire rod spot prices have edged up this week by about $0.50 cwt. ($10/nt or $11/mt), putting most prices within the range of $39.00-$40.50 cwt. ($780-$810/nt or $860-$893/mt) ex-mill. Sources say prices could still edge up further, but considering there is still a “few dollar” remainder from the two price increases announced in March, it is unlikely that US wire rod prices will see a strong spike. However, other sources note the upcoming decision on Section 232 exemptions that could have a bolstering effect on US steel prices if most countries continue to be subject to tariffs.