US domestic wire rod softens as sluggish demand is met by domestic mills

Wednesday, 15 May 2024 00:02:20 (GMT+3)   |   San Diego
       

US domestic wire rod prices declined amid steady but limited demand, with most transactions being met by domestic mills, market insiders told SteelOrbis.

US domestic wire rod is assessed $1/cwt ($22.05/mt or $20/nt) lower at $38.00-$39.00/cwt ($838-$860/mt or $760-$780/nt) FOB mill, off from previous assessments at $39.00-$40.00 cwt. ($860-$882/mt or $780-$800/nt).

Earlier in April, market insiders hinted that domestic wire rod prices were vulnerable to softening as a result of reduced competition from wire rod imports, suitable domestic supplies, and flat to lower scrap prices, all of which were mentioned as contributing to lower prices in market surveys this week.

“There is demand, but it is limited,” said one SteelOrbis market insider. “And, the demand that’s out there right now is largely being met by the domestic mills. Imports continue to not be factor.”

The contact reported trouble selling at $37.00/cwt because of contract limitations, though did hear that large buyers may have been able to convince some sellers to part with spot tonnage at discounted prices.

With US scrap trending steady to lower for May, sources tell SteelOrbis that mills are still largely competing with themselves, giving buyers leverage when booking orders.


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