Imported rebar and wire rod pricing was steady to lower this week as demand for imports has been reduced with this week’s action on proposed 25 percent tariffs by the US Trump administration on Mexico and Canada, market insiders told SteelOrbis.
Even though the implementation of tariffs on the two major US trading partners was delayed by 30 days after steps were announced February 3 to address the flow of deadly fentanyl and immigrants into the US, insiders said imports could remain a less attractive option for US buyers, because many see tariffs as a leveraging tool that Trump will use if he doesn’t think trading partners are doing enough.
Last week, just the threat of tariffs caused Mexico to temporarily withdraw from the US market and domestic long steel prices rose in response. This week, following the Trump tariff announcements, domestic long steel prices were flat, though Mexican suppliers since have resumed operations. Insiders told SteelOrbis this week, the likelihood of higher February scrap prices could also cause mills to raise domestic finished steel prices near term.
“We are expecting prices might go up $1.50-$3.00/cwt. next week due to increases in raw material costs with higher US scrap,” said one Mexican long steel supplier. “Scrap was priced recently up $20 to $40 a ton from January.”
At last report, February scrap is assessed $30-40/gt ($30-41/mt) higher, market insiders told SteelOrbis.
One limiting factor on higher February scrap prices might be that some US mills are still owed contracted scrap deliveries from January, because recent cold weather throughout much of the eastern two thirds of the US has complicated deliveries and caused equipment breakdowns at scrap processing facilities.
“Yes, we have January scrap still owed,” confirmed one major steel mill insider.
In the imported rebar markets, pricing was off on reduced demand as uncertainty over import tariffs still looms, insiders said. Offers from Egypt are reported on a delivered-to-customer basis at $35.00-36.00/cwt. (700-720/nt or $772-794/mt), off from an average $36.50/cwt. ($730/nt or $805/mt) one week earlier. Offers from Vietnam for May delivery are discussed at $33.00/cwt. ($660/nt or $728/mt) delivered, while offers from Mexico on a Houston loaded truck basis were heard flat on the week at $37.00-38.00/cwt. ($740-760/nt or $816-838/mt).
On the import wire rod mesh front, import material on a DDP loaded truck basis USG remains flat at $37.00/cwt. ($740/nt or $816/mt), following earlier price strength as US markets moved higher amid uncertainty regarding the planned restart of the Liberty Steel wire rod plant in March 2025.
In the longer term, market insiders said steel tariffs which could be implemented in early March could ultimately cause domestic long steel prices to rise as imports are likely to be severely reduced, giving domestic mills more levity to raise prices. Insiders told SteelOrbis increased demand from domestic mills could impact supply chains and cause buyers to seek alternative sources of steel, causing temporary gaps and logistical challenges for many. Potential stockpiling of rebar and wire rod could also cause domestic prices to spike ahead of future tariff announcements from the Trump administration.