US domestic rebar pricing declined slightly amid unremarkable demand and continued reports of plentiful domestic supply, while wire rod prices remained flat for a second week in a row, market insiders told SteelOrbis this week.
Insiders said a recent rally in long steel pricing appears to have subsided, 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 tariffs on imported steel and aluminum. Continued uncertainty over tariffs, contacts say, is preventing longer-term investments in infrastructure projects that normally increase yearly demand for long steel products like rebar and wire rod.
April shredded scrap in the US Midwest settled $40/gt ($41/mt) less than March at $415-420/nt ($422-427/mt), while May scrap is last heard sideways to as much as $30-40/gt less, scrap insiders told SteelOrbis. “The spot price of hot-rolled coils is getting softer, so mills are likely to consume less scrap,” an insider added.
“The spot prices for domestic rebar and wire rod are very far from each other which is quite unusual,” remarked another SteelOrbis insider on the on-average $7.25/cwt., or $145/nt ($160/mt) spread between rebar and wire rod. “These steel products have the same production cost so it’s odd to see them this far apart in price. Normally, they’re only a few bucks apart. I would expect short-term rebar pricing to increase some while wire rod prices are likely to decline as more imports come in and production from Liberty resumes.”
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), down $0.50/cwt. ($10/nt or $11/mt) from seven days ago.
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. Sources tell SteelOrbis domestic wire rod mills are “well booked so there is little need for price adjustment.” Also, Liberty Steel remains dormant for yet another week as they continue to fight for a re-opening,” they said.
“The uncertainty that Trump has created with tariffs has not helped much in the steel market,” said the market insider. “There will be an adjustment period of about six months,” he said. “As a result, I don’t anticipate anything major happening on a pricing or demand front over that period.”