Prices in the US wire rod market have stabilized in the last week, as most-but not all-predictions point to a slight scrap increase in November.
Domestic wire rod mills are currently facing a dilemma: weak demand is pressuring them to be flexible with pricing, but they don't want to cut too many deals in light of speculation that shredded scrap pricing will increase next month. Many in the industry are predicting an upward scrap trend that will put prices right back where they were before October's drop-rising by $30/long ton for shredded. However, other scrap insiders believe scrap's downward trend is not over, and November pricing will see an additional $10-$20/lt drop, unless mills resume significant purchasing activity.
For now, most domestic wire rod transactions are being concluded in the same range reported last week, $31.50-$32.50 cwt. ($694-$717/mt or $630-$650/nt) ex-mill, but prices are negotiable-especially large orders might sway mills into dipping slightly below the bottom end of the range, at least until the scrap situation becomes clear.
As for imports, activity is still tepid, with offers out of Turkey not reaching pricing levels that are attractive enough to US buyers. While most offers fall in the range of $29.75-$30.75 cwt. ($656-$678/mt or $595-$615/nt) duty paid FOB loaded truck in US Gulf ports as reported last week, even offers on the low end are not being met with any level of interest.
