Following a sustained period of import price stability, US import long steel markets began a decline this week amid reports of reduced Asian demand and growing supply, even as global oil prices continue to slump from recent war-inspired highs, market insiders told SteelOrbis.
As recent global oil price declines continue following improved market sentiment with recent peace efforts in the Middle East, SteelOrbis weekly import steel assessments now show average spot import steel prices off about $0.50/cwt., ($10/nt or $11/mt), from previous weekly values.
“Reduced demand in Asian markets is pressuring (import) long steel prices down,” remarked one US Midwest-based long steel insider. “We’re seeing a lack of offers (to buy) which is contributing to an increase in supply availability in export markets.”
Market reports indicate Chinese steel producers continue to re-direct supply to alternative markets in Southeast Asia and Africa, in response to heightened global anti dumping efforts aimed at reducing continued Chinese steel oversupply issues. Seasonal declines in local Asian demand -the start of the so-called rainy season- also recently have contributed to lower regional steel requirements as local construction slows and restocking efforts dry up, insiders said.
At the US Gulf Coast, import rebar on a loaded truck basis -previously stable for five weeks- was reported at on average $45.50-46.50/cwt., ($910-930/nt or $1,003-1,025/mt), off from $46.00-47.00/cwt., ($920-940/nt or $1,014-1,036/mt) earlier. Spot pricing for US East Coast import rebar also was assessed $0.50/cwt., down at on average $46.00-47.00/cwt., ($920-940/nt or $1,014-1,035/mt), delivered to customer, off from the $46.50-$47.50/cwt., ($930-950/nt or $1,025-1,047/mt) level where pricing stood for more than a month.
“The last offer I received for September arrivals in Houston can now be had for about $50 cents less versus last week,” reported another US Gulf Coast wire rod importer without stating whether a transaction had been concluded at those levels near press time.
In the import wire rod markets, the SteelOrbis average weekly price for wire rod mesh on a DDP loaded truck basis the US Gulf Coast, is reported on average at $49.00/cwt.,($980/nt or $1,080/mt), little changed from the previous weekly flat assessments reported in a wider $47.50-50.00/cwt., ($950-980/nt or $1,047-1,080/mt) range. Traders said this week’s reported softness in wire rod markets could continue as additional supplies are made available from various “wild card” suppliers from Indonesia and other Asian nations such as Korea and Vietnam, regardless of ongoing anti dumping cases, they said.
This week, global oil prices declined to pre-war levels with US benchmark West Texas Intermediate crude (WTI) priced June 26 at $69.00-69.50 per barrel (/bbl), while Brent crude oil lost another 2-3 percentage points in value on the day, trading between $72.00-73.70.bbl on June 26, the lowest price since before the war started on Feb. 28 when Brent futures settled the day before hostilities began at $72.48/bbl.
