US domestic rebar and wire rod prices were reported flat this week amid limited new spot market demand requirements, long steel market insiders told SteelOrbis this week.
“It’s been a very slow start for the new year,” one long steel market insider told SteelOrbis.
“There’s plenty of supply availability, and domestic mills are fighting with each other to maintain market share,” said another market insider. “So, as a result, prices are little changed.”
In the weekly rebar spot markets, domestic supply on an FOB mill basis is assessed with most transactions noted unchanged from assessments made prior to the holidays at $36.00-37.00/cwt. ($720-740/nt or $794-816/mt), on average $36.50/cwt. ($730/nt or $804.69/mt).
In the domestic wire rod market, most transactions were reported steady at $39.00-40.00/cwt. ($780-800/nt or $860-882/mt), or an average of $39.50/cwt. ($790/nt or $870.83/mt). Near term, wire rod prices could be poised for an increase as supply is expected to decline.
“The wire rod price could jump this month,” said yet another SteelOrbis insider. “Nucor Connecticut announced they will no longer produce wire rod at their Connecticut plant because they are not competitive in the market which could potentially cause a spike in pricing, especially if President-elect Trump increases tariffs.”
Insiders also said near-term long steel pricing could increase if January scrap pricing proves higher.
This week, as the January scrap buy-cycle begins, January scrap, which was earlier called sideways to December values, was discussed $10-$20/gt higher amid reports of continued low inventories at scrap collection facilities, as well as reports of new concerns with truck, river and rail transportation of scrap across the US Midwest as a result of this week’s significant cold weather and snow.
The National Weather Service said this week that a developing La Niña weather pattern is expected to bring wintry weather to areas not associated with snowy conditions to parts of the US South and Southeast. Late this week, second major winter storm Coral is expected to bring snow and ice into parts of Georgia as well as to sections of northern Texas around Dallas.
“A bump up in scrap pricing could really help the rebar markets,” a rebar insider told SteelOrbis.
Recent scrap surveys indicate January shredded scrap pricing could increase by $10-20/gt, meaning delivered to customer pricing for January could settle at $385-400/gt ($390-405/mt).