Several US steel mills have announced June price increases for rebar and other finished steel products since doubled Section 232 steel tariffs went into effect June 4 following an unexpected announcement by US President Trump to that effect on March 30, market insiders told SteelOrbis this week.
Insiders told SteelOrbis that domestic mills had been reluctant to raise prices until now, fearing that higher domestic prices would make imports more competitive. However, that is no longer the case since the tariffs have doubled to 50 percent, they said.
In the finished long steel market, on Friday, June 6, Houston, Texas-based DeAcero Steel announced that its rebar prices would increase by $100/nt ($110/mt), or $5.00/cwt. DeAcero is an “importer of record” for Mexican steel destined for US markets. On June 9, Nucor also announced a $60/nt ($66/mt) or $3.00/cwt., increase for its rebar products, effective for new business received after close of business on June 15, with new orders price protected if shipped by June 19, the steelmaker said. Despite threats of retaliation, the current tariffs on Mexican and Canadian steel imports stand at 50 percent, up from 25 percent on March 12.
“We could see a sideways-to-higher in summer,” reported one Midwest-based scrap buyer, who follows rebar for SteelOrbis, ahead of the recent sideways June scrap settlement. “Especially if these 50 percent tariffs stick around.”
During the week of June 2, SteelOrbis assessed domestic rebar on an FOB mill basis at $37.50-38.50/cwt. ($750-770/nt or $827-849/mt) in thin trade, or on average $38.00/cwt. ($760/nt or $838/mt). On the US Gulf Coast, amid continued reports of high inventory, import rebar was assessed steady at $35.00-36.00/cwt. on a loaded truck basis near Houston, averaging $35.50/cwt.
“I fear many import shipments will be canceled if tariffs are doubled,” a rebar importer told SteelOrbis prior to the recent price hikes. “Domestic construction projects could also falter if nails, beams, rebar and everything else needed increase by 25 percent. If the duties double, import rebar prices could rise from $36.00/cwt. to $43.00/cwt.”
Increased price offers from domestic mills were also reflected in the hot-rolled coils (HRC) segment. Nucor raised its weekly Consumer Spot Price (CSP) -as previously reported by SteelOrbis- by $20/nt ($22/mt) to $890/nt ($981/mt) or $44.50/cwt., the first price increase in four weeks. In late May, Nucor competitor Commercial Metals Company (CMC) announced that it would increase its June spot order book price for HRC to $910/nt ($1,003/mt), or $45.50/cwt. SteelOrbis assessed the average HRC spot price as steady in thin trade this past week at $840/nt ($926/mt), or $42.00/cwt.
