US domestic rebar and wire rod pricing was reported steady to a bit higher this week as winter storms continue to sweep through the country, reducing the availability of spot supply, market insiders told SteelOrbis this week.
“Prices are mostly steady and there is little movement due to this weather,” one long steel market insider said. Cold and snow was reported as far south as Houston, Texas, the first time this has occurred in four years.
In the weekly rebar spot markets, domestic supply on an FOB mill basis is assessed with most transactions noted at $37.00-38.00/cwt. ($740-760/nt or $816-838/mt), on average $37.50/cwt. ($750/nt or $827/mt), up $0.25/cwt. from seven days ago.
Market insiders caution that if harsh cold weather continues across much of the US, there is a likelihood of a long steel price increase, especially if the outlook for February scrap continues to rise. At last report, February scrap in the Midwest on a delivered to customer basis is discussed $20/gt ($22/mt) higher. During the January buy cycle, Midwest shredded scrap settled $20/gt higher than December levels to $395-406/gt ($401-406/mt), on continued reports of scant supply at collection points and cold snowy weather across much of the Midwest, which complicated shipments to customers.
In the domestic wire rod market, most transactions were reported this week steady at $39.00-41.00/cwt. ($780-820/nt or $860-904/mt), or an average of $39.50/cwt ($800/nt or $882/mt).
Market insiders claim very little pressure on domestic long steel pricing from importers, many of whom remain sidelined waiting for news any day of additional tariffs on imports from the Trump administration. At Monday’s SteelOrbis RWR conference in Las Vegas, importers said many remain hesitant to book new cargoes for fear that incoming deliveries from abroad could be hit with unforeseen new tariffs at any time.
Short of new US tariffs on steel imports from the Trump administration, the major concern in the market remains the US weather’s effect on steel delivery and scrap operations, especially given continued plant outages around the US, namely the Liberty steel plant in Illinois as well as the Nucor-Connecticut plant.
“With the severity of the winter conditions, a scrap shortage and subsequent price hike is usually the next step,” another SteelOrbis insider cautioned.