US import rebar and wire rod pricing was reported steady to higher for now a second week, following the Feb. 28 start of the US-Israel-Iran war, market insiders told SteelOrbis.
A combination of higher shipping and energy costs with reduced long steel availability as some overseas mills refrain from offering while war-related risk premiums remain heightened, is likely to continue to be supportive for prices, they said
“I would say the Iran war has significantly raised freight rates and caused some overseas mills to refrain from offering,” reported one Midwest-based long steel insider. “As a result, those mills that are still in the market have raised their prices.” He continued, “In addition, domestic pricing is now at the highest levels seen since Russia invaded Ukraine in February 2022.”
On the US Gulf Coast, import rebar on a loaded truck basis was reported flat for a second week following an earlier $0.50/cwt., rise at $44.50-45.50/cwt., ($890-910/nt or $981-1,003/mt). US East Coast import rebar pricing also was assessed steady to week-ago levels at $45.00-46/cwt., ($900-920/nt or $992-1,014/mt).
And while higher import rebar pricing has yet to manifest as US long steel producers continue to ramp up productive output, importers said wire rod import pricing has begun to rise because US supply remains more limited with production from several key mills, among them Liberty steel and Anton Steel reduced or eliminated.
“On the US rebar side, several new US mills [Nucor North Carolina and Hybar] continue to pump tons into the market and that’s keeping import and domestic prices stable,” the Midwest steel insider added.
In the import wire rod markets, insiders said reduced offers from overseas producers caused prices to increase on average $1.50/nt to $46.00-47/cwt., ($920-940/nt or $1,014-1,036/mt), on a DDP loaded truck basis, up from $44.50-45.50 ($890-910/nt or 981-1003/mt) one week earlier.
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 country of Iran. And, despite news that significant oil supplies would be released from strategic reserves, Brent crude oil prices currently remain nearly 37 percent higher than since the conflict started, trading at over $100/ barrel, the highest level since June 2022. Higher crude prices, insiders added, will mean higher prices for ship bunker fuel, making it more costly to ship steel and other commodities to markets.
