Challenging residential, non-residential and infrastructure construction markets are playing havoc with the domestic wire rod market. And while federal stimulus efforts are on track to stiffen demand, rod producers do not expect a rebound in construction until 2011 although they see an improved business climate in 2010.

Compared to this year, one major consumer expects 2010 commercial projects to be off 25 percent, institutional projects to be down five percent and infrastructure to be flat.

"After the residential market went down a couple of years ago, it was commercial construction that took over for some time (for wire rod). But commercial construction is way off as well," a trader said.

"The construction business is very important to my customers and I know from them that it is not in good shape. That is why the wire rod business is slow," the trader added.

One rod producer, who supplies mesh and nail manufacturers as well as specialty parts fabricators observed that business­—which had been on the upswing — is slowing.

"Business had been good until recently. November and December orders are slow and will remain that way until the beginning of the new year," he said. The company's order book, which is...