4/25/2011 9:34:00 PM
HEADLINES
Q2 Wire Rod Market Roundup

Volatile raw material markets are making quarterly wire rod terms difficult in Asia, while prices are “escalating very rapidly.”

• ScrapMonster.com reported termed U.S. domestic wire rod market as “neutral” due to shredded scrap trends.

• U.S. imports of wire rod in March totaling 78,598 metric tons – up from 61,175 the previous month, according to the U.S. Import Monitoring and Analysis System.

• Mongabay.com traces wire rod prices from $660 in early 2007 to a peak period between August 2008 and February 2009 reaching $1,200.  During 2010 prices fell below $800 but by February 2011 were back up to $840.

• Cavert Wire Co. Inc. traced wire rod prices from record levels in 2007 until late 2008 when prices plummeted. “Now because of a very strong demand for ferrous scrap and iron ore, prices are again escalating very rapidly.”

Cavert notes that through consolidation the number of domestic wire rod manufacturers and capacity has declined.  The consolidation coupled with a weak U.S. dollar “has resulted in pricing strength for the U.S. wire rod industry.”

“In past years, prices moved in direct correlation with their order backlog. Now, prices move consistent with their raw material costs.”

Cavert projects higher prices as the global economy improves. Steel demand will increase – driving up prices for ferrous scrap and iron ore. 

• Taiwan’s China Steel Corp.’s adjusted prices for domestic sales of steel in April and May increased, Fastener World reports.  Wire rod prices jumped by TWD 2,500 per ton.

 The price for galvanized steel rolls was increased by TWD 3,500 per ton, followed by TWD 3,167 for hot dip galvanized steel rolls. 

• TATA Steel increased wire rod prices for April 2011 by a minimum of 125 pounds ($201.50) per ton, with some grades increasing by as much as 150 pounds per ton, SteelGuru reports.

“The price rise is being driven by continuing increases in raw material costs as well as improvement in demand for the product.”

TATA officials blamed the hikes on the rising cost of iron ore and coking coal.

Metalbulletin.com reported Turkish wire rod export prices rose due to increased demand from South America. As of April 20, prices for mesh quality wire rod hit $700 to $715 per ton  – up from $680 to $690 the previous week.  ©2011 GlobalFastenerNews.com