September 06, 2008

Wire rod prices in US surge by 19% in December 2007

It is reported that steel wire rod prices in North America increases to USD 593 per tonne in December 2007 up by 19% YoY. As per reports, US’s wire rod makers have proposed further price hike to USD 620 per tonne.

Market insiders suggest the immediate pricing outlook is clouded by overall weak demand for the product used to feed screw machines that make bolts, nuts, rivets, yokes and various mechanical parts. Rod also is used to make steel wire reinforcing products, sold primarily to manufacturers of concrete products used in non residential construction. And the outlook for nonresidential construction also remains uncertain.

Market analysts comment wire rod price USD 620 per tonne won’t be implemented unless demand improves dramatically.

Analysts at Global Insight forecast that the wintertime peak will be under USD 610 a ton, sliding back to the USD 580 to USD 560 range as the weather improves.