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Price notice: Amend domestic wire rod prices

Nov 10, 2018 | 11:55 AM | Nat Rudarakanchana

Tags  steel, wire rod, CHQ wire rod, cold-heading quality wire rod, rod, rod prices, domestic rod, pricing notice steel prices


Fastmarkets AMM proposes to amend the specifications and frequency of its US wire rod price assessments.

Fastmarkets AMM proposes to change its cold-heading quality (CHQ) rod price from a US fob mill price to a North American delivered duty paid (ddp) Great Lakes region price.

Fastmarket AMM’s current specification for cold-heading rod is as follows:

Cold-heading quality wire rod
Currency and Unit: US dollars per hundredweight
Location: USA
Basis: fob mill
Frequency: Twice a month, second and fourth Wednesday
Price Type: Assessment
Quality: Between 0.22% and 0.45% carbon content
Gauge: 7/32 to 3/8 inch outside diameter
Typical lot size: 100 tons
Raw Material Surcharges: Included

The proposed price specification is as follows, with changes highlighted in bold:

Cold-heading quality wire rod
Currency and Unit: US dollars per hundredweight
Location: North America
Basis: delivered duty paid (ddp) Great Lakes region
Frequency: Once a month, third Friday
Price Type: Assessment
Quality: Between 0.22% and 0.45% carbon content
Gauge: 7/32 to 3/8 inch outside diameter
Typical lot size: 100 tons
Raw Material Surcharges: Included

In addition, Fastmarkets AMM proposes changes to its wire rod pricing schedule. Industrial-quality wire rod prices are proposed to be assessed once monthly, on the third Tuesday of the month. Presently this price is assessed on the second and fourth Wednesdays of the month.

High-carbon wire rod prices are proposed to be assessed once a month, on the third Friday of the month alongside cold-heading-quality rod prices. Presently high-carbon rod prices are assessed twice a month, on the second and fourth Wednesdays.

Import wire rod prices are proposed to be assessed published once a month, on the third Tuesday of the month. Presently these prices are assessed on the second and fourth Wednesdays of the month.

Fastmarkets AMM also proposes to discontinue its mesh-quality wire rod assessments.

These changes to the frequency and specifications of the Fastmarkets AMM wire rod prices reflect the needs of the physical marketplace. Most domestic wire rod prices are negotiated monthly, and changes to the assessment schedule also reflect that market participates typically negotiate rod prices after US scrap prices settle, on or before the 10th of the month.

Proposed changes to cold-heading quality rod prices reflect the fact that Canadian mills participate significantly in the US wire rod marketplace. Fastmarkets AMM’s current price excludes Canadian mills as it specifies only US producers.

A delivered price allows ease of use among US rod buyers, because much cold-heading quality rod is priced on a delivered basis. The Great Lakes region is a suitable location for cold-heading quality rod because much US automotive manufacturing takes place in the region. Cold-heading quality rod is heavily used in automotive applications.

The assessments will include any Section 232 or other anti-dumping and countervailing duties. The consultation period for this proposal will end on Monday November 26; an update to this notice will be published on that day.

Fastmarkets AMM has no financial interest in the level or direction of these assessments.

To provide feedback on this price, or if you would like to provide price information by becoming a data submitter to this price, please contact Nat Rudy by email at: pricing@fastmarkets.com. Please add the subject heading FAO: Nat Rudy, re: domestic wire rod.

To see all Fastmarket AMM’s pricing methodology and specification documents, click here.



 

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