Wire Prices Stabilize

We are seeing a leveling-off of wire prices over the past couple months.  This trend is great news for us and our customers, and we hope that it will continue. Part of the reason that prices have become stable is that foreign wire has become more attractive as domestic wire becomes more expensive.  Domestic prices have grown so high that the price of foreign steel is comparable, even with the 25% tariff on imported steel.  This fact may be why domestic rod suppliers have stopped pushing increases on their customers. While a price decrease is unlikely, suppliers have indicated that there is reason to believe that prices have at least stabilized for the foreseeable future. Allocation and availability issues are still a problem for wire customers, but Tennessee Spring and…
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Updates

We have seen several more increases since early April, bringing our wire costs up 35% higher than they were at the beginning of 2018.  Another increase is said to be coming in July. There are many factors affecting wire costs and availability, most of which will push prices upward. On the aggravating side, tariffs have been placed on our trade allies: The EU, Canada, and Mexico were temporarily exempted from the tariff implemented by President Trump in March of 2018.  At 12 AM on June 1st, the exemption expired and the tariff was applied to those ally countries.  President Trump had previously held off on applying the tariffs to our close trade allies “while the United States pursued negotiations to address the administration’s concerns about the state of domestic steel…
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The Chaos Continues

We have continued to monitor the steel market situation, and things are getting uglier.  We would like to update you on the details. What we are seeing: Wire mills have been flooded with new orders in anticipation of the new tariffs that were approved by President Trump Wire is becoming scarcer due to increased demand - murmurs of availability shortages and allocation persist in discussions about steel Our wire costs have increased 17.5% since January, and another increase is coming as soon as this week Our timeframes are getting shorter with regards to when the increases are announced and when we are seeing the higher prices Prices for wire orders are now being handled on a week by week basis Wire must be ordered a month in advance Wire drawing…
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Wire Turmoil 2018

Wire Market Turmoil 2018 As we continue to follow the drama of the high carbon content steel markets over the last 4 months, we thought you might appreciate an informed update.  As I am sure you are aware, there has been a high level of unprecedented and unfavorable activity throughout the global steel “rod” markets.  Since “rod” is the raw material from which our wire is drawn and given the global consolidation of rod suppliers in the world market over the last several years, we find ourselves more directly impacted by the turmoil and international intrigue of the last four months. What is happening in the global market: Over the last several years, a multitude of “anti-dumping” lawsuits have been filed with the US Department of Commerce by American companies…
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