US Import long steel prices were reported stable to slightly less this week in continued thin trade, as market participants reported lower long steel offers in reaction to flagging raw materials prices mostly in the form of scrap, amid continued limited global steel demand, market insiders told SteelOrbis.
Insiders told SteelOrbis that since rebar import offers (mostly from South Korea and Turkey at $44.50-46.50/nt or $890-930/nt or $981-1,025/mt) remain so close to US domestic replacement costs, that it’s limiting meaningful arbitrage opportunities and reducing weekly trade activity.
“Import offers remain near domestic replacement costs, despite slightly softer international offers this week,” reported one US Gulf Coast long steel insider. “Market participants (in the US) generally expect (domestic) pricing to remain stable through Q3, supported by healthy mill order books and ongoing public infrastructure projects, mostly in the form of new data centers.”
In the import rebar segment, insiders report Turkish rebar export offers at $565-$575/mt, FOB, stable to earlier weekly levels, while Asian price offers were reported lower as suppliers discount pricing in order to move product. Reports of weak seasonal demand, sluggish construction and real estate-related building activity, as well as squeezed global profit margins at mills continue to dominate market conversations regarding Asian long steel product.
“Overall, the demand situation in Asia is not good,” reported another US-based import long steel insider. “So, as a result, suppliers are said to be reducing prices a bit more in order to be able to move their product to global markets. This week’s pricing is really a function of lower demand at the Asian mills.”
On the US Gulf Coast, loaded truck rebar is offered $0.50/cwt., less at at $44.50-45.50/nt ($890-910/nt or $981-1,003/mt), while equivalent US East Coast material was reported flat on the week at $45.50-46.50 ($910-930/nt or $1,003-1,025/mt). Some insiders are reported to be keeping an eye on US East Coast import rebar pricing for signs of potential discounts soon, though a clear consensus remained problematic at press time.
In the wire rod segment, import pricing for wire rod mesh on a DDP loaded truck basis at the US Gulf was discussed steady on the week following earlier declines at $47.50-49.50 ($950-990/nt or $1,047-1,091/mt). And, while pricing was largely flat this week in limited trade, recent declines in import rod markets could resume near term as additional supplies begin to be made available from various “wild card” suppliers from Indonesia and other Asian nations such as Korea and Vietnam.
“We’re seeing long steel pricing mostly stable on the domestic side and a bit less on the import side this week,” the US-based long steel importer added. “Because of solid domestic demand, US mills are not so keen to offer bargain deals right now, even though global steel demand continues to be seasonally weak.”
