US import rebar and wire rod pricing was reported steady to slightly higher this week, mostly the result of the Feb. 28 start of the US-Israel-Iran war, market insiders told SteelOrbis.
And, while demand for imports is improved as US domestic long steel prices remain strong, importers told SteelOrbis freight, insurance and energy prices were likely to rise between 10-15 percent as a result of the ongoing Mideast conflict, which is now in day seven.
About 20 percent of the world’s total oil supply, or about 20 million barrels of oil daily are transported through the Strait of Hormuz, which borders the eastern flank of Iran. Brent crude oil prices are up about 24 percent to $91, the highest level since April 2024. Higher crude prices, insiders said, will mean higher prices for the ship bunker fuel necessary to ship steel and other commodities to global markets..
“I’m hearing that shipping rates are up and some key overseas mills are not offering,” remarked one US Midwest long steel insider when asked why long steel prices were up this week. “It’s uncertain times for sure,” he added. “Steel imports as well are going to be further reduced as a result of this war.”
And, following this week’s sideways March scrap price settlements, long steel insiders said domestic long steel markets might be poised for yet another domestic mill price increase announcement, as demand from ongoing and new infrastructure projects in the US is reported solid. Further domestic price increases, insiders say, could encourage more future imports.
The outlook for a break in the ongoing US scrap price rally follows another recent round of domestic mill long steel and structural steel price increase announcements, boosting rebar and wire rod spot prices to levels not seen since late-2022. These price hikes, insiders said, will continue to make room for a limited amount of imports to enter the US markets, mostly from South Korea, even though existing 50 percent Section 232 steel tariffs, long lead times, and strong freight rates could keep volumes on the low side.
“US customers are not real happy about these recent (domestic) mill price increases, but they have to pay them” the Midwest import insider added. “They can clearly see that the spread between US scrap and the price of finished steel products is about $500/ton, when it normally trades at about $200/ton.”
On the US Gulf Coast, import rebar on a loaded truck basis is reported flat on the week following a previous $0.50/cwt., rise at $44.50-45.50/cwt., ($890-910/nt or $981-1,003/mt). US East Coast import rebar pricing was also steady to week-ago levels at $45.00-46/cwt., ($900-920/nt or $992-1,014/mt), insiders said. Eastern US rebar markets remain tighter than US Gulf Coast and Midwest markets, though shortages are still reported for most markets, they said.
“We’re seeing very little import rebar coming into the Houston market,” added another US Gulf Coast rebar trader.
“There’s lots of uncertainty right now in the markets, because we are on a wait-and-see basis regarding the Iran war,” another long steel insider said.
In the import wire rod mesh market, insiders said prices rose an additional $0.50/cwt this week with wire rod mesh on a DDP loaded truck basis reported at $44.50-45.50 ($890-910/nt or 981-1003/mt), up from on average $44.00-45.00/cwt., ($880-900/nt or $970-992/mt) one week ago.