9/24/2012 11:56:00 AM
HEADLINES
Global Wire Rod Markets Heating Up
Higher iron ore prices are strengthening Chinese market on the heels of leveling prices from Chinese steelmakers and price hikes in the U.S. as American rod manufacturers mull a trade case against China and Turkey amid mounting frustration a flood of highly competitive imports.
China’s Wire Rod Market ‘Rebounds’
The Chinese rebar and wire rod market is rebounding “on (the) back of higher iron ore prices,” Steel Orbis reports.
The news follows a decision by China’s steelmakers to keep main steel product prices unchanged in October following three consecutive months of price cuts.
Baosteel said its September prices for hot-rolled coil and cold-rolled coil would roll over into October unchanged. And Wuhan Iron & Steel announced similar news, hoping to stabilize the market.
Chinese steelmakers are getting support from China’s central government, which announced plans to spend more than $150 billion on a new round of infrastructure projects.
U.S. Wire Rod Makers Battle Imports
U.S. carbon steel wire rod makers are mulling a trade case against China and Turkey amid mounting frustration a flood of highly competitive imports, according to American Metal Market.
“Growing overseas capacity and a slowdown in demand throughout Europe and Asia have made the U.S. market one of the most attractive in recent periods, domestic steelmakers have said,” writes Catherine Ngai of AMM. “Pared with a crimped construction sector and a slowdown in U.S. demand, sources say business has become increasingly difficult for domestic rod mills.”
Nearly 115,000 tons of Turkish rod arrived at U.S. ports during the first six months of 2012, up 48% from the 77,533 tons reported in the same period of 2011, according to data from the U.S. Department of Commerce’s Import Administration.
Chinese imports soared to 48,038 tons in the first half of 2012, up from 153 tons during the first half of 2011.
The report follows news that soaring scrap price drove U.S. steelmakers, including Nucor, to increase wire rod prices by US$80 per short ton for September. ©2012 GlobalFastenerNews.com
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