Just last week, sources told SteelOrbis that US domestic wire rod mills were aiming for a $42.00 cwt. ($840/nt or $926/mt) ex-mill price level, although another announced price increase might be needed to get there. But those plans have “grinded to a halt” as of yesterday, sources say, after US Department of Commerce Secretary Wilbur Ross announced an investigation into “illegitimate profiteering” in the US domestic steel market in the aftermath of Section 232 tariffs, noting that domestic steel price hikes have far exceeded the 25 percent increase in import prices.
Sources tell SteelOrbis that US wire rod mills have immediately backed off their push for higher prices, indicating prices might even drop slightly depending on how “rigorous” the investigation turns out to be. For now, US domestic wire rod spot prices are static in the range of $40.00-$41.50 cwt. ($800-$830/nt or $882-$915/mt) ex-mill, although purchasing activity has quieted as well, as buyers consider the rapid decline in mill leverage.