US domestic rebar and wire rod prices were flat for an eighth straight week amid continued limited spot market demand and a growing outlook for sideways to lower scrap pricing during the month of October, market insiders told SteelOrbis.
Market respondents said the June doubling of Section 232 import tariffs to 50 percent was continuing to slash imports from abroad at a time when domestic demand remains low because of limited steel requirements from the US manufacturing and construction sectors of the economy. Recent quarter-point interest rate cuts from the US Federal Reserve had little effect on the markets as they were largely already factored into pricing, they said.
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. Insiders say as imports lag, some domestic rebar mills are having a harder time keeping up with orders, so mills could be poised to announce another round of further price increases soon.
"While the month is not over yet, if September (imports) close at this trajectory, it will be quite a significant decrease compared to other months,” one US Gulf Coast long steel importer explained.
According to the Washington, D.C.-based International Trade Administration’s (ITA) US Steel Import Monitor, US imports of rebar and wire rod were much lower this month as well. The ITA preliminarily reported 8,967 mt for rebar and 21,936 mt for wire rod for September.
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.
“Liberty Steel is not 100 percent, but the company is doing well,” according to a SteelOrbis insider.
