US wire rod prices likely to slide

It is reported that the US domestic wire rod market is seeing a correction and the price may begin to slide, although domestic mills are increasing their prices for August 2008. A combination of dropping import offers and weak demand for scrap are the main reason.

Current wire rod prices quoted by domestic mills are prevailing at USD 1,235 per ton to USD 1,257 per ton and USD 1,290 per ton to USD 1,312 per ton for high carbon wire rod.

Some mills in South Korea and Malaysia are showing greater interest in the US market, as they are trying to offset weak markets at home, said a trader. Their prices are not attractive now, but it is expected that they will be offering more competitive prices soon.

US wire rod imports totaled 75,546 tons in July 2008 as compared to 138,325 tons in the corresponding month of last year.