Will US domestic wire rod prices continue to drift downward?

Thursday, 24 January 2019 22:50:30 (GMT+3)   |   San Diego
       

Although US domestic wire rod mills did not announce a formal price decrease following the $30/ton drop in shredded scrap prices earlier this month, sources report widespread deals on a customer-by-customer basis that have dragged down the overall spot price range. Last week, SteelOrbis reported US domestic wire rod prices narrowing into a range of $38.50-$39.00 cwt. ($770-$780/nt or $849-$860/mt) ex-mill. This week, sources say the bottom end of the range has slipped to $38.00 cwt. ($760/nt or $838/mt) ex-mill.

However, sources tell SteelOrbis that the downward drift might be coming to an end if updated scrap projections for February come to pass. While expectations as of mid-January pointed to a sideways to slightly down trend for US domestic scrap prices, the latest predictions point to a sideways to slightly up trend. If scrap prices hold steady or slightly rise in February, US domestic wire rod mills will regain some leverage in keeping spot prices level.


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