US import rebar and wire rod pricing was steady to slightly less this week as demand for import material remains limited following the June 4 implementation of 50 percent steel tariffs, market insiders told SteelOrbis. Uncertainty among steel importers remains heightened with many buyers and sellers sidelined pending an extended Aug. 1 deadline for affected countries to re-negotiate their current reciprocal tariff levels with the US Department of Commerce.
Spot market insiders say long steel importers, facing higher delivered costs amid ongoing 50 percent Section 232 steel tariffs, report few buyers yet willing to accept their higher offers versus domestic material, even as domestic long steel prices have been moving higher since tariffs went into affect. This week, reports of limited import rebar sales at reduced prices were noted, as sellers attempt to maintain cash flows as import demand stalls.
“So far, markets are flat this week,” remarked one import long steel insider. “Demand (for imports) is just no good.” “ I hear import offers slipped to $40/cwt from $42/cwt, maybe temporarily, since importers need to raise money,” said another import steel insider to SteelOrbis.
Reports indicate the doubling of steel tariffs from 25 percent to 50 percent effective June 4 has increased the delivered price of import rebar and wire rod by $6.00-7.00/cwt., making much imported material non-competitive against domestic supply. Recent price increases by domestic mills has “yet to increase domestic pricing to the point where imported material makes sense,” insiders said.
As high pre-tariff inventory continues to be drawn down on the US Gulf Coast, import rebar on a loaded truck basis vicinity Houston is offered at $39-41/cwt, with most offers noted slightly less on average at $40/cwt, off from $39-42/cwt., one week prior.
“Current pricing is supported by (import) inventory constraints, even as overall demand lags,” reported one Gulf Coast long steel importer. “Ongoing Section 232 tariffs and pending negotiations with Mexico and Canada continue to cloud visibility for new bookings.”
Rebar inventory from Mexico staged in Texas on a loaded truck basis is offered steady at $39.50-42.50/cwt., little changed versus previous $40.00-$42.00/cwt., workable trading ranges reported several weeks earlier.
Insiders say foreign producers continue to avoid the US markets until there’s more clarity on tariffs. On July 7, US President Trump issued an executive order extending the deadline for reciprocal tariff negotiations to be completed from July 9 to Aug. 1 as few country-specific deals remained inked. Fourteen major US trading partners received letters from the US administration stating individual tariff levels ranging between 25-40 percent in addition to any existing sector-specific tariffs.
“With little foreign material on the water, competition from imports remains limited for now,” the long steel importer added. “Especially, as sellers are reluctant to discount heavily in a low-volume environment.”
Long steel insiders continue to report price volatility could continue through July and now into August, as the market re-calibrates around new costs, continuing trade policy uncertainty, and potential retaliation from Canada and Mexico against the US, especially if tariff levels between the US’s two major trading partners fail to be re-negotiated before the revised August deadline. US President Trump stated this week in media reports that there will be no additional extensions for reciprocal tariffs.
In the wire rod markets, workable spot trade offers are yet again heard at $45-46/cwt., though few trades are expected to occur as import pricing remains higher than available delivered domestic supply, even as wire rod output reports from the recently restarted Liberty Steel wire and rod plant in Peoria, Illinois were unavailable.