Rebar and wire rod markets continued to post stable pricing this week as supply and demand appear fairly well balanced as markets head into the first summer month of June, market insiders told SteelOrbis. Stable pricing follows recent announcements from several steel makers of additional price increases for beam and other specialty steel products.
Insiders told SteelOrbis domestic finished steel prices continue well supported by reduced import competition as a result of Section 232 steel import tariffs, higher energy pricing from the continued conflict in the Middle East, as well as improved domestic demand from data center builds and other infrastructure-related long steel buying.
“The US rebar market remains firm following recent price increases from CMC, Nucor, and Gerdau,” said one US Gulf Coast long steel insider to SteelOrbis. “Although demand varies by region, mills have successfully captured a meaningful portion of these increases due to reduced import competition, lean inventories, and strong activity from infrastructure, energy, manufacturing, and data center projects.”
In the domestic rebar market, Midwest rebar on an FOB mill basis remained steady for a third week at $47.00-48.00/cwt. ($940-960/nt or $1,036-1,058/mt), up from $46.00-47.00/cwt., ($920-940/nt or $1,014-1,036/mt) earlier. SteelOrbis data shows on a yearly basis, domestic rebar prices remain about 24 percent higher on an equivalent basis.
“There's not much to say,” said another US East Coast rebar dealer when asked about this week's pricing scenario. “Things don’t change much week after week, thankfully. Supply is iffy, business is sluggish, pricing is too high, and the mills are opportunistic. Same as it ever was.”
In the local wire rod markets, spot pricing on the US Gulf Coast is steady following month-earlier $1.00/cwt., ($20/nt or $22/mt) price increases, which saw pricing on an FOB basis rise to $50.00-51.00/cwt., ($1,000-1,020/nt or $1,102-1,124/mt).
Traders are keeping an eye on continuing developments with regard to a May 29 announcement from US Trade Representative Jamieson Greer about a sweeping Section 301 investigation focusing on structural excess capacity and production in manufacturing sectors globally, which broadly includes Vietnamese steel products.
“The big news this week is about the Section 301 investigations into Vietnam,” said one US Midwest long steel insider. “Vietnam is important because its currently the largest supplier of imported wire rod into the US, and, until we know more about the investigation, we’re not going to be on offer for any wire rod from Vietnam.”
Reduced imports of wire rod have kept US domestic wire rod pricing strong, with local capacity continued to be reported as “tight.”
In other news this week, media reports indicate the United States is temporarily reducing Section 232 tariffs on steel, aluminum and copper imports, mostly for certain agricultural and industrial goods, according to an announcement from US President Trump on June 1. Starting June 8, agricultural equipment such as combines and harvesters will face a 15% tariff, down from the 25 percent level that Trump set for many derivative steel and aluminum products in April. The 15% tariff rate will also apply to certain residential HVAC systems and components, media reports said. The changes to tariff treatment for agricultural equipment and industrial goods, as well as the derivative production expansion, will stay in effect until Dec. 31, 2027, the reports said.
