A combination of low demand and high inventories is continuing to drag down the US domestic wire rod market, with sources saying that the price bottom has likely not been reached. Most spot prices are still falling within last week’s range of $31.00-$32.00 cwt. ($683-$705/mt or $620-$640/nt) ex-mill, although most transactions are closer to the $31.00 cwt. price point, with some even dipping below.
“Mill want any order at any price,” said one source, adding that it would still not be a surprise if US wire rod mills announced a price increase for September shipments, to “put a floor” on prices at the very least. However, buyers are already balking at such rumors, and one source speculated that mills only floated the idea to get customers to buy ahead of a possible increase. Unfortunately for mills, the rush to buy did not materialize, and they are still reportedly eager to cut deals.