NEW YORK Wire
rod prices were largely unchanged following a round of
increases last month, with most buyers continuing to pay about
$20 more than a month ago, as margins for buyers and suppliers
Wire rod mills
announced $30-per-ton ($1.50-per-hundredweight) increases last
month, but most customers did not pay the full increase, and
prices settled up about $20 per ton ($1 per cwt), buyers and
"Rod producers have
not achieved that ($30-per-ton) level of increase," one wire
rod buyer said. "Roughly $20 (per ton) got implemented. Some
might have gotten by with less than $20, some paid $30. Most of
the mills were pretty compliant as long as there were some tons
Those pricing patterns
continued this month, but the $20 increases were not universal,
and a few buyers said they were paying up to $30 more.
"When the new price
increases came in they (mills) really stuck to it no matter how
we fought. I was surprised because I really thought they were
bluffing," a second rod buyer said.
Several weeks ago,
mill sources told AMM that larger orders might see
discounts attached, but small orders were mostly bearing the
brunt of increases (
amm.com, Nov. 21).
Mesh-quality wire rod
is transacting at around $650 per ton ($32.50 per cwt) f.o.b
the mill, up from $645 per ton ($32.25 per cwt), while
industrial-quality rod remained at $660 per ton ($33 per cwt),
high-carbon rod was even at $700 per ton ($35 per cwt) and
cold-heading-quality rod was flat at $800 per ton ($40 per
Market players are
waiting for scrap prices to settle this month (
amm.com, Dec. 5), and for the next round of wire rod
price negotiations to begin. Higher scrap prices could lead to
further increases, sources said, but mills are likely to
continue to be pressed by Chinese imports.
"Until we file a case,
its going to be a problem," said one mill source.