NEW YORK Steel wire rod import prices from China
have climbed in recent weeks, closing the spread between
imported and domestic product after import prices hit a deep
bottom in the past few months.
Import prices have gone up from China, one wire
rod trader said. In northern China they might have gone
up 15 dollars per ton. Other mills are pushing up from $25
per ton up.
Prices for low-carbon imported Chinese wire rod have settled
between $570 and $590 c.i.f. port of Houston, sources said,
up from around $550 per ton in much of June. Sources said the
price increase was due to rising costs of iron ore at the
Chinese prices are going up. Theyre following raw
material inputs, a second wire rod trader said.
Were seeing raw material prices starting to pick
upthats either due to low inventories or lack of
A third wire rod trader confirmed that the few mills that use
scrap instead of iron ore as an input are offering rod at
U.S. rod buyers were turning to Chinese imported rod in
droves earlier this year (amm.com, May
17) as oversupply in China pulled rod prices there
Rod buyers saw large spreads in import prices and
domestic mills feared a flood of imports. Most
rod buyers have not yet paid the higher prices that traders
are asking for the Chinese material, and several said that
they are still relying on inventories as much as
The Chinese are still making life difficult for the rod
mills, a rod buyer in the South said. Domestic
(mills) know theyre not going to get the material we
can source from elsewhere. I think theyre resigned to
volumes we make available to them primarily due to our buy
Higher-carbon material has been more reliable recently,
sources said, and buyers are eager to use Chinese material to
lower their input costs.
The rod buyer in the South said he has seen more high-carbon
material available, and added that he saw the spread between
domestic high-carbon and Chinese high-carbon wire rod is
still about $140 per ton.
But with prices strengthening, Chinese material is less
lucrative leaving traders more reluctant to bring on large
quantities of Chinese material, two traders told AMM.