US domestic rebar and wire rod pricing was steady this week, as markets took a wait and see attitude regarding today’s March 12 implementation of new Section 232 tariffs on all global imports of steel and aluminum moving into the US, market insiders told SteelOrbis.
Given recent timing delays and concessions on tariff amounts from the US administration, it remains unclear whether President Trump will remain steadfast in his plans to continue tariffs on US allies and foes alike, even as several players, namely Canada and the European Union already have said they plan to bring on reciprocal tariffs of their own. US reciprocal tariffs are scheduled to begin April 2, though some insiders, given Trump's recent reactions, think it could happen sooner.
In the weekly rebar spot markets, domestic supply on an FOB mill basis is assessed with most transactions noted at $40.00-41.50/cwt. ($800-830/nt or $882-915/mt), on average $40.75/cwt. ($815/nt or $898/mt), unchanged from seven days ago.
“In the US right now, demand for rebar remains kind of crummy,” said one Gulf Coast rebar insider. “A lot of construction projects remain on hold by and large because of tariff uncertainty. And, while current market pricing was flat this past week, prices are certainly poised for an increase.”
And while previous price increases from mills have yet to be fully accepted in spot markets, many market insiders expect US steel prices to remain strong near term as tariffs on imported material will make foreign products increasingly non-competitive versus domestic suppliers. Less competition from imports on a price perspective, they say, could embolden domestic suppliers to continue recent price increases.
In the domestic wire rod market, most transactions were reported this week at $43.00-44.00/cwt. ($860-880/nt or $948-970/mt), or an average of $43.50/cwt. ($870/nt or $959/mt), unchanged from seven days ago.
Long steel market insiders told SteelOrbis this week that recent increases in the price of March ferrous scrap also was prompting US mills to consider more price increases.
“There’s going to be a decrease in the amount of finished steel and scrap coming in from Canada, our largest supplier,” an insider said, “and that’s going to cause the price of scrap to continue higher as mills try to make up the supply shortfall.”
Although the March scrap market had yet to settle as of press time, at last report, March prime busheling scrap in the US Ohio Valley is discussed at $30/gt ($30/mt) premiums to February settles, or about $485-510/gt ($493-518/mt).
Scrap traders told SteelOrbis this month’s March scrap settle has also been delayed because of tariff uncertainty, as the monthly published numbers from various steel publications including SteelOrbis, are usually available on or before the second Tuesday of the month.