US domestic rebar and wire rod prices were flat for a ninth straight week as spot market demand remains limited and as more scrap survey respondents told SteelOrbis this week that October scrap markets could continue to move lower.
Domestic rebar insiders said low spot demand and a lower scrap outlook is being balanced by continuing reports of reduced local supply as a result of ongoing 50 percent steel tariffs. Market respondents said September long steel imports “came down hard last month,” causing more uncertainty and a supply gap to develop in the steel market that continues to persist.
“September (preliminary) imports were closer to 10,000 mt when they are typically 80,000 mt which is causing a hole in the market,” a market insider explained.
In the weekly rebar spot markets, domestic supply on an FOB mill basis was assessed with most transactions noted at $44.50-45.50/cwt, ($890-910/nt or $981-1,003/mt), on average $45.00/cwt, ($900/nt or $992/mt), unchanged from seven days ago.
On the raw materials side, October scrap pricing across prime and now shredded US Midwest grades is now seen $10-30/gt lower. Insiders said obsolete grades may follow, though recent overseas scrap trades for November delivery indicate October domestic declines for HMS and P&S grades might be more limited.
One SteelOrbis long steel insider offered his take on the current long steel market situation. “After the additional 25 percent tariffs went into effect, domestic rebar mills basically went up 35 percent,” he said. “Steel fabricators got “squeezed hard by the short-term price increase,” he explained, causing an unanticipated delay in many pre-sold construction jobs. When many of those jobs came to a halt as a result of untenable material price increases, the current flat pricing situation was the result.
In the domestic wire rod market, domestic supply on an FOB mill basis was assessed with most transactions reported this week at $46.50-47.50/cwt ($930-950/nt or $1,025-1,047/mt), or an average of $47.00/cwt ($940/nt or $1,036/mt), unchanged from seven days ago. Little price movement in wire rod markets is likely near term as output from the key Liberty Steel wire and rod plant is reported to be at or near capacity.
“The Peoria (Illinois) plant’s 700,000 ton per year restart has covered earlier shortages, bringing balance but also capping upside (price movement),” another market insider reported to SteelOrbis. “Wire rod offers predictable pricing and secure supply,’ he said, “a safe planning base for distributors and fabricators heading into Q4.”