In the days preceding the Thanksgiving weekend, the price trend of US domestic wire rod seems to have stabilized for the time being as the weak demand is counteracted by an upward momentum in scrap prices.
Most domestic low carbon wire rod offers continue to range from approximately $27.50 cwt. to $28.50 cwt. ($606/mt to $628/mt or $550/nt to $570/nt) ex-mill. While demand remains weak, US cut-grade scrap offers have increased in the second half of November, and this should help keep prices from falling much, if any, further. In fact, there is a chance that mills may try to push through a price increase for January shipments, depending on how extensively US scrap prices rise in early December.
US producers have begun taking a more upbeat view in light of the scrap trend and since they have successfully been filled their December books (albeit with mostly cold heading IQ grades rather than low carbon and mesh). It is too early to tell how January books will shape up to look, but mills are hopeful that the recent scrap increases, along with relatively low customer inventories and rising import prices, will allow some domestic price recovery in the first quarter.
For now, activity in the US wire rod market generally remains pretty quiet in the last couple days before the four-day Thanksgiving weekend, and no major activity or January price move is expected to be seen until at least next week.
On the end-user side, some wire mesh producers report that while business remains down, November has shaped up to be a better month than October and everyone starting to get cautiously optimistic about January.
As regards imports, both Chinese and Turkish mesh-quality offers continue to range from approximately $25.50 cwt. to $26.50 cwt. ($562/mt to $584/mt or $510/nt to $530/nt) duty-paid, FOB loaded truck in US Gulf ports.
Although there have not been any major bookings heard to have been concluded at this price level, the price trend for import rod remains up, with a strong likelihood of further increases in both Chinese and Turkish offers over the next couple of weeks. Turkish mills are pointing to higher scrap prices, whereas Chinese producers are seeing improved domestic market performance.
Item | Spot price for US buyers | From last week | From last month | Pricing Trend | Comments |
US domestic low carbon wire rod | $28.00 cwt. ($617/mt or $560/nt) | No change | Down $1.00 cwt. ($22/mt or $20/nt) | K | Ex-US mill |
Import mesh-quality wire rod (Turkish and Chinese origin) | $26.00 cwt. ($573/mt or $520/nt) | No change | Up $0.25 cwt. ($5.50/mt or $5/nt) | J | Duty-paid, FOB loaded truck in US Gulf ports |