Under the twin pressures of weak demand and soft scrap predictions, US domestic wire rod spot prices dropped $0.50 cwt. ($11/mt or $10/nt) this week, into the range of $33.00-$34.00 cwt. ($728-$750/mt or $660-$680/nt) ex-mill. While sources recently hoped shredded scrap prices might only decline around $20/long ton this month, original speculation of an approximate $40/long ton decrease once again seems more likely. In the event of another large scrap drop, US mills will probably have no choice but to lower wire rod transaction prices again--however, considering they only decreased prices by half of the June scrap decline, there's a good chance mills will attempt another halfway move.
As for imports, Chinese wire rod offer prices are slightly lower this week at $31.50-$32.50 cwt. ($694-$717/mt or $630-$650/nt) DDP loaded truck in US Gulf ports--representing a $0.50 cwt. drop from last week--although traders report that offers might have hit bottom. Turkish wire rod offers, on the other hand, are steady at $33.00-$34.00 cwt. ($728-$750/mt or $660-$680/nt) DDP loaded truck in US Gulf ports, as Turkish mills seem to have taken the hint that US buyers are not willing to pay higher prices when other import offers and domestic prices are so competitive.