US import rebar and wire rod prices were mostly steady this week, even as domestic long steel prices were steady to higher, lead by continued tariff-reduced finished steel supply, steady but unremarkable demand, and continued strength in local scrap markets, market insiders told SteelOrbis this week.
While many of the same supportive fundamentals for domestic long steel production continue, such as data center build activity, insiders said continued strength in steel scrap pricing has been key in determining long steel price direction of late.
On the US Gulf Coast, import rebar on a loaded truck basis is discussed at $45.00-47/cwt., ($900-940/nt, or $992-1,036/mt), unchanged from one week earlier. US East Coast rebar at the “pier” is talked at $45.00-46/cwt., little changed from week-ago levels, market insiders told SteelOrbis.
“Domestic rebar pricing held firm before CMC implemented a $30/ton ($1.50/cwt) price increase, immediately following (higher) January scrap settlements,” said one US Gulf Coast rebar insider. “Spot pricing remains at multi-year highs, supported by tight domestic supply, limited import replentishment, and rising raw material (scrap) prices.”
During recent January scrap negotiations, most US domestic scrap grades rose an additional $20-30 a gross ton (gt). In December and January trade alone, US Midwest shredded scrap prices -the US rebar benchmark scrap grade- has increased a total of $50/gt to $415-420/gt ($422-427/mt), a nearly 8 percent gain. During the same time period, US domestic rebar pricing rose about 4.3 percent.
Long steel insiders say recent announcements of price increases from domestic mills could continue as domestic supply continues to tighten.
Following a January 9, $1.50/cwt., price increase from Commercial Metals Company (CMC), Charlotte, North Carolina-based Nucor announced its own $30/nt price increase on sales of domestic rebar. Insiders told SteelOrbis they were surprised Nucor followed CMC’s announcement, as Nucor usually leads price announcements, though it demonstrates the continued paucity of domestic rebar supply “on the ground,” they said.
At current, domestic rebar and wire rod stand at parity at $48.00-49/cwt., ($960-980/nt or $1,058-1,080/mt), with rebar up about $1.50/cwt., on the week, market insiders told SteelOrbis. Wire rod was flat to week-ago levels, though could be poised to rise soon as inventories dwindle, insiders said.
“Imports are getting more traction on rebar as a result of recent domestic price increases,” said another US Midwest long steel insider. “The gap between import pricing and domestic prices is increasing, which could signal that more imports likely are on their way to the US.”
Insiders told SteelOrbis they expect more inbound long steel deliveries from Turkey and Korea during February, March and April. “Once the increased imports start to flow, we could see some softening for domestic pricing,” the insider added.
In the import wire rod market, wire rod mesh on a DDP loaded truck basis US Gulf is discussed steady on the week at $44.00-45/cwt., ($880-900/nt or $970-992/mt), despite a recent $40/nt price increase from Nucor ($2.50/cwt.) on engineered mesh products.
“Import wire rod and wire mesh prices remain competitive but have not disrupted domestic pricing, given tariff exposure, logistics, and ongoing buyer behavior,” said one US Gulf Coast long steel insider. “Demand is slow but steady, typical for the season.”
The long steel insider added that reports on the status of the Liberty Steel wire and rod plant indicate the Peoria, Illinois-based unit is running at less than full capacity. Calls to confirm ongoing operations at Liberty Steel by SteelOrbis were not returned as of press time.