NEW YORK U.S. wire rod transaction prices increased this past week due in part to steady demand, according to market sources.
Deals were concluded at $570 to 580 per ton ($28.50 to $29 per hundredweight) c.i.f. Port of Houston for March delivery, up from $550 to $570 previously.
Some market participants reported receiving several wire rod import offers from Chinese producers at $580 per ton.
"Weve heard of offers at $580 per ton. From what Ive heard, everyone has been placing orders at that price," one U.S. wire rod producer source said.
There are rumors circulating that U.S. producers will file an anti-dumping case against imports of Chinese wire rod, with some wire rod market participants rushing to import material ahead of the potential trade case, sources said.
"Its not a good business to be in right now. There is too much local competition and the risk is too high and margins are thin," a trader told AMM.
Wire rod demand in the United States remains steady as most market participants purchase small tonnages on a hand-to-mouth basis.
"Our business is doing OKits steady. I buy what I need when I need it. I dont speculate by buying ahead. I stopped doing that a long time ago. If I was good at it Id be on Wall Street," a wire rod distributor source said.
China will ship 67,876 tonnes of wire rod to the United States this month, according to data from the U.S. Commerce Departments Enforcement and Compliance division collected through Jan. 21, up from 35,900 tonnes in December.