Although scrap prices for June are expected to show a slight downward trend, all indications point to no change in official transaction prices for US domestic wire rod. Already, one major long product mill has announced no change in prices for rebar this month, and sources tell SteelOrbis that other major mills will follow suit for most long products, including wire rod. However, this does not mean that mills will be able to keep spot prices under their control--there's a strong chance that the dual pressures of low demand and dropping import prices could sink spot prices into the $32.00 cwt. ($705/mt or $640/nt) ex-mill level or slightly below for larger customers. For now, the spot range has widened to $33.00-$34.00 cwt. ($728-$750/mt or $660-$680/nt) ex-mill, down $0.50 cwt. ($11/mt or $10/nt) on the low end in the last week.
As mentioned, certain import offers are continuing to decline--Chinese mills are reportedly eager for orders, and offer prices dropped about $0.50 cwt. in the last week to the range of $28.25-$29.25 cwt. ($623-$645/mt or $565-$585/nt) DDP loaded truck in US Gulf ports. Traders tell SteelOrbis that some offers even below that level have been heard, but they are mostly from other traders going on "fishing expeditions" to feel out the bottom of the market. Turkish wire rod prices, meanwhile, are unchanged in the last week in the range of $30.00-$31.00 cwt. ($661-$683/mt or $600-$620/nt) DDP loaded truck in US Gulf ports. However, traders report difficulty getting in touch with Turkish contacts due to the heavy protesting in the country, but they are confident that they will be able to get accurate information about the market within the next week.