US domestic rebar and wire rod prices rose this week, as cold weather and scarce inventory is causing February scrap prices to rise, and also amid uncertainty regarding expected February 1 steel tariff actions by the Trump administration, market insiders told SteelOrbis.
In reaction to longstanding issues on immigration with Mexico and Canadian trade imbalances, US President Donald Trump has threatened new 25 percent tariffs on its two nearest trading partners starting February 1. Insiders caution that tariffs on imported steel could cause US consumer prices to rise, fueling additional inflation.
In the weekly rebar spot markets, domestic supply on an FOB mill basis is assessed with most transactions noted at $37.00-38.50/cwt. ($740-770/nt or $816-849/mt), on average $37.75/cwt. ($755/nt or $832/mt), up from seven days ago.
In the domestic wire rod market, most transactions were reported this week at $40.00-42.00/cwt. ($800-840/nt or $882-926/mt), or an average of $41.00/cwt. ($820/nt or $904/mt), up from seven days ago.
“On one hand the wire rod business is slow, but on the other hand the wire drawers are considering possible purchases because there is uncertainty about the supply for the spring business which is traditionally very strong,” a domestic rebar insider told SteelOrbis.
“Everyone is still waiting on tariffs,” said another market insider. “It has been reported that President Trump will start initiating tariffs at the beginning of February which will cause prices to continue to increase,” he said.