John Wolz

U.S. wire rod producers are welcoming increased demand and a ruling by President Clinton providing �safeguard options� and raising prices accordingly.
Prices are going up at least $20 per ton starting as soon as March 1.
Montreal-based Ivaco announced wire rod price increases effective April 1 of $20 to $30 per ton, depending on the grade. �This increase, however, falls far short of closing the gap to prevailing prices in the marketplace prior to the onslaught of imports,� Ivaco CEO Paul Ivanier said.
American Metal Market reported American Steel & Wire, Co-Steel Raritan and GS Industries Inc. also announced price increases.
GS CEO Mark Essig told AMM demand is strong and scrap costs have been very high. Prices �are too low � far too low to justify investment in the industry,� Essig said. Recent prices were $290 to $295 per ton, and in a strong market the prices would be $340 to $355.
Clinton�s Section 201 ruling imposes restrictions on U.S. imports of wire rod.
Ivanier said there has been pressure on wire rod selling prices from imports into North America for more than a year.
In addition to wire rod, the imports have �an impact on selling prices for some of our downstream fabricated steel products,� Ivanier added.
The U.S. International Trade Commission recommended a 15% tariff on all wire rod imports, decreasing to 9% over four years. The tariff would exclude Canada and Mexico.
Clinton�s plan is a three-year tariff rate quota adding 10% duties in the first year, 7.5% in the second and 5% in year three. The added duty would apply when imports exceed 1.58 million net tons of wire rod.
�While the import relief falls short of the ITC recommendation, it certainly is a step in the right direction for a North American industry that has suffered serious injury because of increased imports at substantially unfair subsidized prices. Half a loaf is better than none,� Ivanier described the import relief policy.