By the end of July, the global Steel Wire Rod market exhibited diverse trends across key regions, reflecting varying economic and industrial conditions. In the United States, Steel Wire Rod prices dropped slightly by the end of the month. The supply side faced significant challenges, but US mills chose to maintain their base prices instead of lowering them, despite weak demand. Business activity was slow, and the market was oversupplied, giving buyers, particularly those purchasing in large volumes, significant negotiating power. Across the Atlantic, the European Steel Wire Rod market experienced an upward price trend. Steel wire rod prices in Germany rose significantly due to new contracts from the German Ministry of Defence, which boosted demand and created supply constraints. In China, Steel Wire Rod prices declined by the end of July due to challenging market conditions. Despite weak demand, supply remained high as producers hesitated to ramp up production amidst rising inventories. Moreover, the introduction of new mandatory quality standards for steel, set to be implemented soon, added to the supply-side challenges.

By the end of the week ending July 26th, US Steel Wire Rod prices fell by 1.5%. The supply side of the US Steel Wire Rod market has faced significant challenges. Despite these pressures, US mills have been hesitant to lower their base prices. Instead, they have maintained their published base prices while closely monitoring market developments. Mills have managed to keep lead times stable by exercising capacity control, although these lead times remain historically short due to persistently weak demand. Demand for Steel Wire Rod in the USA remains weak, contributing to a bearish market sentiment. Business activity has been slow, with little interest from buyers in building inventories. Distributors and brokers report an oversupplied market were substantial negotiating leverage rests with buyers, especially those making large-volume purchases. This environment has led to significant discounts off the base prices, as buyers take advantage of current market conditions.

The European Steel Wire Rod market has shown an upward price trend of 1.0% as of the week ending on July 26th. In June 2024, Germany's crude steel output surged by 8.9% year-on-year, as reported by the German steel federation (WV Stahl). The German Ministry of Defence's recent contracts, totalling over 14 billion euros, notably influenced supply dynamics. Rheinmetall, a major beneficiary, secured an ammunition order worth approximately 8.5 billion euros, marking its largest order to date. These contracts are expected to boost demand for Steel Wire Rod and other steel products, contributing to market stability while creating supply constraints. Additionally, rising steel prices and significant defence contracts have bolstered demand for Steel Wire Rod in Germany. This surge in demand has played a crucial role in driving up Steel Wire Rod prices despite broader supply challenges. The increase in defence orders is likely to sustain demand as manufacturers increase production to fulfil new contracts. Consequently, Steel Wire Rod prices stabilized at USD 720 per metric ton in FD-Ruhr, Germany, reflecting a 1.0% increase from the previous week.

By the week ending July 26th, Steel Wire Rod prices had declined by 2.7% due to challenging market conditions. Despite weak demand, the supply of Steel Wire Rod in China remains high. Producers are increasingly reluctant to ramp up production due to continuous inventory rises and sluggish demand. The introduction of new mandatory quality standards for steel, set to be implemented, has added to the supply-side challenges. Regional steel trading associations have requested a delay to the standards, citing concerns over existing stockpiles and aiming to facilitate a smoother transition to the new requirements. Additionally, demand for Steel Wire Rod in China remains weak, particularly due to the downturn in the property sector. The Purchasing Managers' Index for the steel industry fell, reflecting a decline in production activities and demand. High temperatures and frequent rainfall have further dampened construction activities, contributing to the slack demand. The real estate crisis has sharply reduced domestic steel demand, leading to a surge in exports to markets in East Asia, India, the Middle East, and Latin America.

According to ChemAnalyst, pricing trends for Steel Wire Rod are expected to vary by region. In the United States, prices might increase due to seasonal demand surges, particularly in the automotive industry. Conversely, Germany could see a rise in Steel Wire Rod prices driven by higher production costs, including transportation and raw material expenses. Meanwhile, China is anticipated to experience a demand increase from the construction sector, leading to higher purchases and prices. These differing market dynamics underscore the various factors affecting global Steel Wire Rod pricing trends, emphasizing the need to closely monitor regional developments for informed decision-making.