US domestic rebar and wire rod pricing was unchanged this week as markets appear well supplied, insiders said, even as uncertainty remains high surrounding the future of tariffs on imported steel entering the United States.
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), unchanged from seven days earlier.
As previously reported by SteelOrbis, on February 4, US President Trump suspended 25 percent tariffs on both Canada and Mexico, after their country’s leadership assured the US administration that they would take concrete steps to stem the flow of illegal drugs and immigrants into the US. 10 percent tariffs on China were enacted though Trump is expected to address the issue with the Chinese leader this week.
Although the proposed tariffs are largely delayed for now, market tensions with importers of scrap and finished steel remain high.
“There is going to be an impact for sure on the market,” said one SteelOrbis long steel market insider. “There is a lot of political pressure, so these tariffs can be in and out at anytime.”
Market insiders said even the threat of tariffs will further reduce the flow of steel imports into the US, allowing domestic mills and distributors more levity to raise prices.
While domestic long steel pricing appears stable for now, some market insiders told SteelOrbis this week that rising scrap prices could cause finished steel prices to rise following the completion of monthly scrap trade expected before Tuesday, February 11. Higher prices this week were noted for flat steel.
“The threat of higher scrap has most expecting another price increase from the mills,” said one US East Coast rebar market insider. “The mills have plenty of material for now, as much of it is still sitting on mill floors.”
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), unchanged from seven days ago.
“From what I can see, the wire market is weak and real wire rod demand is soft,” another market insider said. “A lot depends on mid-March when Liberty Steel wants to go back into production, however, people are still doubting this.”
Wire rod supply is expected to remain under pressure near term as in addition to Liberty, Nucor has suspended wire rod production at its Connecticut-based wire rod mill, moving production to other more profitable facilities located in the US Southeast.
At last report, February scrap is discussed at $30-40/gt ($30-41/mt) premiums to January settles. If February scrap closes trade at these levels at the conclusion of the monthly buy cycle, February shredded scrap vicinity Chicago would be priced at about $430-435/gt ($437-442/mt).