US domestic rebar and wire rod spot prices were flat for a tenth straight week as the market remains quiet amid continued low demand, and as scrap prices moved lower across all scrap grades, market insiders told SteelOrbis this week.
Continued maintenance operations at US mills are reducing the need for scrap, insiders said, causing settled prices to decline $10-20/gt across all grades from September levels.
Market respondents added that markets remained weak because the continued US government shutdown and its effects on construction project funding could cause rebar and wire rod demand to suffer. “Overall, we are going into a very significant slowdown,” a SteelOrbis import insider said. “The steel market is hopeful for next year, but I am still feeling pessimistic.”
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.
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.
Recent reports from wire rod insiders indicate Peoria, Illinois-based Liberty Steel's 700,000 ton Liberty Steel wire and rod plant is operating at or near capacity, reducing the likelihood of local near term price increases. “Liberty Steel has remained active this week,” the long steel insider said.