US domestic rebar pricing was reported lower this week on reported continued sluggish domestic demand, while an uptick in wire rod pricing was noted, as Liberty Steel’s 700,000 ton per year steelmaking facility in Peoria, Illinois, is now expected to shut by the end of October, market insiders told SteelOrbis this week.
While no official confirmations on the plant status have yet been received from Liberty Steel, despite repeated attempts by SteelOrbis, market insiders reported that the plant has announced it will be shut and existing wire rod supplies sold at the end of October.
An earlier SteelOrbis story from October 7 reported that the plant had temporarily reduced production capacity at its melt shop and rod mill because of “ongoing challenges the US steel market is facing, including low-priced imports.” It was also reported that the company had decided to minimize production at its wire mill.
Market insiders said the anticipated loss of up to 350,000 tons per year of dedicated wire rod production capacity from Liberty was causing disruptions in the local markets, as most spot market wire rod transactions were reported this week at $39.00-41.00/cwt. ($780-820/nt or $860-904/mt), or an average of $40.00/cwt. ($800/nt or $882/mt), up from an average $37.50/cwt. ($750/nt or $826.74/mt) seven days ago. Liberty also produces rebar and industrial wire from billet at the facility.
In the weekly rebar spot markets, domestic supply on a FOB mill basis is assessed with most transactions discussed at $34.50-37.00 cwt. ($690-740/nt or $761-816/mt), although on average $35.75/cwt. ($715/nt or $788/mt), down from last week’s $36.00-39.00/cwt. ($720-780/nt or $794-860/mt) range.
“Demand for rebar has seen little improvement compared to last month,” said one US Gulf Coast rebar dealer. “We are also seeing less interest in overseas bookings.”
The near-term outlook for domestic rebar pricing could trend higher over the coming weeks if current expectations for steady to higher November scrap prices materialize, market insiders said. “Scrap (prices) will be up again in November due to scarce HMS1 supply,” he said. “This could potentially trigger a light price increase.”