With US shredded scrap prices declining this month around $50/mt, sources tell SteelOrbis that US domestic wire rod prices are becoming increasingly vulnerable to deals. While there is still no indication that wire rod mills will announce a formal price decrease, the general consensus is that now that the scrap market is settling, wire rod spot prices will most likely “unofficially” soften by up to $1.00 cwt. ($22/mt or $20/nt) in the near-term.
Sources say demand within the US domestic wire rod market is not strong enough to withstand such a significant drop in scrap prices, and current spot price levels “won’t last long, if they’re even still available today.” Current spot prices are around $40.00-$41.00 cwt. ($882-$904/mt or $800-$820/nt) ex-mill.