What's next for the US wire rod market?

The US wire rod market is still struggling to climb as offer prices have risen but demand has not. On the whole, following US mills' scrap-based price hike announcements earlier in the month, domestic wire rod offers are up by about $1.50 cwt. ($33/mt or $30/nt), with most domestic low carbon offers currently ranging from $30.00 cwt. to $31.00 cwt. ($661/mt to $683/mt or $600/nt to $620/nt) ex-mill. This range does not reflect the full increase that producers originally announced, but given the weak demand, mills may have a hard time raising prices beyond the abovementioned range.

Nevertheless, the pricing trend remains slightly up as there is already talk that mills may announce another price increase in February, depending on scrap prices. As with the latest price increase, mills know they are unlikely to receive it in full, but they may use it as a mechanism to drive home the previous hike.

As for imports, most traders continue to offer Turkish rod at a range of about $28.50 cwt. to $29.50 cwt. $28.50 cwt. to $29.50 cwt. ($628/mt to $650/mt or $570/nt to $590/nt) duty-paid, FOB loaded truck in US Gulf ports. However, Turkish mills are having difficulties getting bookings and customers are hesitant to book at the current offered price as they are uncertain about whether prices will continue rising in the next couple month and there is not a big enough gap between the import and domestic offers. So, the price trend for import rod has neutralized, and Turkish mills may even become more willing to negotiate on prices if raw material costs start to trend down again or they become more desperate for bookings. For now, mills aren't too inclined to move prices in either direction.

Preliminary census data from the US DOC shows that wire rod imports totaled 89,690 mt in December, which reflects a decent-sized increase from November imports of 58,359 mt. However, as there have been few competitive import offers for many weeks, import arrivals aren't expected to continue escalating strongly in January/February. The US' top import sources for wire rod in December, as per the preliminary census data, were: Canada (31,081 mt), Italy (17,348 mt), Turkey (14,908 mt), Japan (9,851 mt), and Mexico (6,447 mt).

Belgium's Bekaert inaugurates Russian steel cord plant in Lipetsk

The Belgium-headquartered steel cord and wire manufacturer Bekaert has announced that on January 20, 2010, it officially inaugurated its new steel cord production plant located in Lipetsk Special Economic Zone in Russia. Russian President Dmitry Medvedev and the company's main customers and suppliers in the region were present at the inauguration. Production at the first phase of Bekaert's new steel cord plant, with a capacity of 15,000 mt of steel cord for tire reinforcement, was started on December 31, 2009. Work on the steel cord plant project was started in January 2008 and is scheduled to be fully completed in 2013. The total investments involved are estimated at about €100 million, with €18 million already invested in the first phase of production. "This new manufacturing platform will service the domestic market and the wider CIS region. In so doing, Bekaert is responding to the rising local demand for steel cord products," reads the company's statement. The Lipetsk region, about 400 kilometers south of Moscow, is strategically located close to the target markets, with good logistics, good access to energy supplies and a skilled labor force. The new plant currently employs 92 people. Another 320 jobs will be created in line with the planned investments, from now through 2013.

Die Quip Releases New Machine

Die Quip Corporation is introducing a new machine to our line of precision die finishing equipment. The Die Flex MA is the second machine in our Die Flex line. It is a semi-automatic angle polishing and sizing machine. Once the operator places the die into the machine an automatic cycle runs either the angle polishing or bearing calibration programs.

The machine automatically finds the approach angle so different diameter dies with the same angle can be polished without changing the machine settings making the Die Flex MA easy to use for removing die wear. The dies are held in a 3-jaw adjustable chuck to insure die concentricity, which reduces out of round wire. Like all Die Quip machines the Die Flex MA is built on a sturdy steel base with industry standard parts for a long heavy-duty work and a long production life.

World steel output fell 8% in 2009

World steel output fell 8% in 2009: "World steel output fell by 8 per cent last year as the economic crisis pounded major producing countries, but emerging powers China and India bucked the trend, an industry group says."

Indian wire rod import prices up by $ 20, more gains expected

Indian wire rod import prices up by $ 20, more gains expected: "Indian wire rod import prices have increased by $20, market participants said, predicting more increases in the near future."

(AMM) Insteel posts $1.1M loss as sales fall 33%

(AMM) Insteel posts $1.1M loss as sales fall 33%: "Insteel Industries Inc. posted a net loss of $1.1 million in its fiscal first quarter, an 80-percent improvement from a $5.6-million loss in the same period a year earlier despite a 33.3-percent decline in sales to $41.2 million from $61.8 million."

Belarus issues 2009 steel production results

Belarus issues 2009 steel production results: "According to the data released by Belarus' National Statistical Committee, in 2009 the country registered a 7.9 percent decrease year on year in its crude steel production to 2.45 million metric tons, and a 3.6 percent drop in its finished steel product output to 2.3 million metric tons."

Small Tube Products sets 4% hike

Small Tube Products sets 4% hike: "Small Tube Products LLC, Duncansville, Pa., plans to increase prices for all copper, copper alloy and aluminum tube products by 4 percent, effective with all shipments on or after March 1."

General Cable Expands in South Africa

General Cable Expands in South Africa

Car Production Set To Crank Up 69% In Quarter

Car Production Set To Crank Up 69% In Quarter: "After a long spell of cutting production and closing plants, North American automakers are preparing to build substantially more cars as evidence mounts that the economic recovery is gathering momentum."

Severstal-Metiz will close Carrington Wire

Severstal-Metiz will close Carrington Wire: "Severstal-Metiz will close its UK-based wire fabrication company, Carrington Wire, because the business is no longer profitable, the company said"