US domestic rebar and wire rod prices remained flat again this week, even as December scrap settled higher due to improved domestic and export demand. And as higher priced scrap will increase steel production costs, domestic steel producers told SteelOrbis there is a likelihood of another posted price increase by domestric mills before early January, long steel insiders told SteelOrbis this week.
On Nov. 7, Charlotte, North Carolina-based Nucor increased its posted prices for rebar by $30/nt ($33/mt), or $1.50/cwt. No additional price increase announcements have been issued to date by the US steel maker.
“Domestic rebar mills don’t care very much right now, they don’t have the capacity anyway so why wouldn’t they offload some of their #20s to importers to make more money elsewhere,” remarked one long steel insider to SteelOrbis.
December scrap pricing is likely to settle sideways to at least $20/gt ($22/mt) higher as inventory of shredded scrap supply is reported low and the effects of cold and snowy weather are expected to continue to reduce inflows into local collection facilities, market insiders told SteelOrbis this week.
In the weekly rebar spot markets, domestic supply on an FOB mill basis was assessed with most transactions noted at $46.00-47.00/cwt, ($920-940/nt or $1,014-1,036/mt), on average $46.50/cwt, ($930/nt or $1,025/mt), unchanged from seven days ago.
On the domestic long steel demand side, weekly discussions with market insiders again focused on the US construction industry and its current demand driver in new data center construction projects, when compared with tepid residential and commercial construction activity. According to Construction Dive, construction job openings and hires both decreased tremendously during October, “pointing to a broader industry slowdown outside of the booming construction niches, such as data center construction.”
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. Wire rod has stayed steady for several months now, amid continued reports of stable supply and demand.
“These things happening in the steel market are great for demand and prices should be trending higher,” the long steel insider concluded.