Wire rod prices decline on scrap, demand fall
Oct 12, 2012 | 04:42 PM
| Michael Cowden
CHICAGO Wire rod prices have declined for October shipments, with mills quietly lowering tags in line with falling scrap tags and tepid demand from most end-use sectors.
The dip also comes as significantly lower-priced Chinese material is expected to enter the U.S. market this year and in early 2013, buyer sources said.
While the bulk of those shipments have yet to arrive, tonnages are expected to be significant. Delivered prices for mesh and industrial-quality material have been booked in some cases in a range of $565 to $575 per ton ($28.25 to $28.75 per hundredweight) even to inland ports as far north as Ohio, some buyer sources said.
But while domestic mills may be bracing for the arrival of Chinese material, several buyers said they have yet to see the mills make any significant changes to their sales or marketing strategies in the near term. "I do not see the rod mills willing to pass through 100 percent of scrap declines. ... They are still trying to maintain their spreads," one rod buyer said.....
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