US long steel prices were stable again this week, as reports of increased domestic supply availability and steady to potentially lower US Midwest scrap pricing for April are being offset by rising oil-related domestic and global transportation costs as a result of the continuing war in Iran, now in its fourth full week, market insiders told SteelOrbis.
Domestic fuel price increases are having an affect on the cost of domestic transportation, insiders told SteelOrbis, as the price of diesel fuel in the Chicago, Illinois, continued beyond $5.25 a gallon (March 25), up from about $5.06/gal one week earlier and up nearly 35 percent from on average $3.89/gal one month before.
“Trucking fees in the US are up between 20-30 percent since the price of diesel has spiked,” said one Midwest-based long steel insider. “I think higher trucking fees are going to have an impact on a wide range of industries, not only steel.”
And while transportation costs are reported on the rise, the price of domestic rebar on a Midwest FOB mill basis has yet to increase, most recently trading steady for a third week at $47.50-48.50/cwt., ($950-970/nt or $1,047-1,069/mt), market insiders told SteelOrbis. Insiders said current rebar and wire rod lead times are starting to improve as more production capacity becomes available from Nucor, Lexington, as well as Hybar Steel. Lead times quoted for new production have dipped to 4-6 weeks, they said, down from earlier reports at 6-8 weeks.
In the domestic wire rod markets, insiders told SteelOrbis pricing remains flat for a second week, though remains more subject to potential price increases, as supply is still reported tight as a result of reduced production from Peoria, Illinois-based Liberty Steel’s 700,000-ton wire and rod plant.
Average SteelOrbis spot prices for wire rod mesh on an ex-mill Midwest basis are reported steady at $49.00-50.00/cwt., ($980-1,000/nt or $1,080-1,102/mt), though up from $48.50-49.50/cwt., ($970-990/nt or $1,069-1,091/mt) reported three weeks earlier.
