Two US wire producers have announced to customers that they will increase prices for mesh and wire in November.
In separate announcements, Insteel Wire Products and Ivy Steel & Wire Inc. each informed customers that effective with shipments as of November 5, 2007, prices for concrete pipe fabric, structural mesh, and bright basic wire will increase by $2.00 cwt. ($44 /mt or $40 /nt).
Both companies cite recent increases in raw material costs as the reason for the price hike, and both warned of further increases to come.
Insteel said in its letter to customers, "Additional increases are anticipated by January 1st, 2008."
Ivy gave a similar forecast in its letter: "Recent wire price increases and cost pressure, even with a slow economy, have forced us to implement this increase. There is also talk that there may be another rod price increase in the next couple of months. We will keep you posted."
For building fabric, price increases are steeper from both manufacturers. In recent months, building fabric prices declined significantly in the US, and now mesh makers are trying to recoup the price decay with increases of up to eight percent. According to early indications, business is picking up some with mesh inventories getting fairly slim. One mesh manufacturer told SteelOrbis that due to the shrinking inventories, their customers are accepting the price increases.
These wire/mesh price increases follow the $1.50 cwt. ($33 /mt or $30 /nt) wire rod price increase that domestic mills implemented for October shipments.