For a third week, import long steel prices were reported steady, following an earlier Iran war-related freight and fuel adjustment higher, amid new reports that increased rebar supply at US Gulf Coast ports was unlikely to cause significant price disruptions due to ongoing 50 percent steel import tariffs and steady to lower domestic long steel pricing, market insiders told SteelOrbis this week.
Even as a fragile April 7 US-Iran war ceasefire continued on April 9, insiders reported limited new shipments of Korean rebar arriving at US Gulf Coast ports, some of which was expected to offload at Corpus Christie, Tx., Houston,Tx., and New Orleans, La. In addition to current arrivals, more ships remain enroute from Korea, insiders said.
“We expect there to be additional spot supply available probably next month,” added one US Gulf Coast rebar importer. “Even if the supply is sold to distributors, it will land at $44-45/cwt. ($880-900/nt or $970-992/mt). “There are more than a few shipments to the US currently on the water,” remarked another US Midwest long steel importer. “Once they arrive, we don’t expect them to have a significant impact on pricing, because of steel tariffs and because domestic and import pricing currently are so close (about $10/ton). Recent gaps in Gulf Coast rebar supply have been filled.”
On the US Gulf Coast, import rebar on a loaded truck basis remains flat for a sixth week following an earlier $0.50/cwt., freight-related price adjustment to $44.50-45.50/cwt., ($890-910/nt or $981-1,003/mt). US East Coast import rebar pricing on a loaded truck basis also wasa stable to week-ago levels at $45.00-46/cwt., ($900-920/nt or $992-1,014/mt).
Domestic rebar traders told SteelOrbis this week that increased output from two key US mills, Nucor, Lexington, Ky., and Hybar Steel, in Arkansas, was preventing US rebar prices from rising to the point where import material had much room to be competitive. This week, domestic rebar pricing fell for a second time in as many weeks by $0.50/cwt., to $46.50-47.50/cwt., ($930-950/nt or $1,025-1,047/mt) on an FOB mill basis, further lowering the attractiveness of import material, they said.
In the wire rod markets, import wire rod mesh on a DDP loaded truck basis USG remained flat at $46.50-47.50/cwt., ($930-950/nt or $1,025-1,047/mt).
“Wire rod pricing remains stable week over week, though could be subject to upward price pressure from recent freight volatility,” remarked one US Gulf Coast long steel insider. “Wire rod continues to show relative strength versus rebar, with tighter supply and higher sensitivity to cost inflation.”
On April 9, US benchmark West Texas Intermediate crude oil (WTI) futures for May delivery on the New York Mercantile Exchange (NYMEX) traded at $102 per barrel (/bbl), up more than 3 percent on the day, amid renewed geopolitical tension in the Middle East, specifically, with regard to Israeli missile attacks on Hezbollah positions in Lebanon ,and continued low volume of shipping through the Strait of Hormuz. Prior to the conflict, WTI oil prices on NYMEX were about $67/bbl..
