US domestic rebar and wire rod prices were flat this week, though pricing could trend down in the near term, as domestic demand remains weak and US scrap prices are seen lower for May, long steel market insiders told SteelOrbis.
Following lower April price settles, US Midwest May prime and shredded scrap prices are expected to settle between $10-30/gt ($10-30/mt) less during monthly supply negotiations, owing to continued reports of plentiful supply at local yards and reduced domestic and international demand for new scrap.
In the weekly rebar spot markets, domestic supply on an FOB mill basis is assessed with most transactions noted at $38.00-39.50/cwt. ($760-790/nt or $838-871/mt), on average $38.75/cwt. ($775/nt or $854/mt), unchanged from seven days ago.
“Buyers are taking a very conservative approach to buying steel at the moment,” said one SteelOrbis long steel insider. “With recent decrease in purchases, domestic rebar and wire rod pricing has stayed very steady for several weeks now,” he said.
In the domestic wire rod market, most transactions were reported this week at $45.50-46.50/cwt. ($910-930/nt or $1,003-1,025/mt), or an average of $46.00/cwt. ($920/nt or $1,014/mt), unchanged from seven days ago. Insiders report that the downed Liberty Steel wire and rod plant remains offline, so domestic supplies remain tight, even as wire rod demand struggles.
Insiders said that like the recent rally in flat steel pricing, long steel pricing increases appear to have moderated, partly the result of reduced prices seen for April and May scrap amid reduced mill demand for finished steel and partly the result of recent actions by the US Trump administration on implement 25 percent tariffs on imported steel and aluminum. Continued uncertainty over tariffs, the contacts say, is preventing longer-term investments in infrastructure projects that normally increase yearly demand for long steel products like rebar and wire rod.
“People seem to be also taking a more conservative approach to infrastructure project starts,” the insider added. “With the tariffs in place, US mills are likely to start lowering their prices to retain market share in the face of imports.”