US import long steel pricing was stable in light trade this week following the conclusion of monthly scrap negotiations that saw rising prices rise across the US for ferrous scrap, market insiders told SteelOrbis this week.
Scrap traders said pricing rose $10-20/gt ($10-20/mt) across all grades as domestic mills purchased increased amounts of material amid reports of reduced supplier inventories and rising demand as a higher number of mills were expected to be in operation in December versus November when many producers were shuttered for annual maintenance operations.
“December scrap should have only been higher for shred, but Gerdau, Centerville came out early on December 2 with $20/gt higher across the board and the rest of the market -dealers, brokers, etc.- just ran with it,” remarked one Midwest scrap trader. “Thanks Gerdau!”
This past week, market insiders told SteelOrbis higher scrap prices for December might trigger another round price increases from US mills, now potentially facing higher steel production costs. Likely competition from imports that may occur as a result though, was expected to temper the amount of increases, they said.
“I think we’re more than likely to see another price increase come from domestic mills given higher December scrap, but there doesn’t see to be a real hard push for it at this time given that market seems to be fairly balanced,” said one Midwest long steel importer. “And, given the situation with imports, domestic prices remain stable for now, with another potential price increase likely by early January.”
On Nov. 7, Charlotte, North Carolina-based steel maker Nucor increased is posted prices for rebar by $30/nt or $1.50/cwt. No posted rebar price increases has been reported by the mill since that date.
Insiders told SteelOrbis a domestic rebar price approaching $47.00-48.00/cwt., ($940-960/nt or $1,036-1,058/mt), might encourage an “influx” of new rebar imports into the US Gulf Coast and US East Coast markets. Current domestic rebar spot pricing remained steady for a third week at $46.00-47.00/cwt., ($920-940/nt or $1,014-1,036/mt), just short though very near to the stated import price threshold.
On the US Gulf Coast, following reports of earlier small weekly gains, import rebar pricing on a loaded truck basis was reported steady at $44.00-47.00/cwt., ($880-940/nt or $970-1,036/mt), or on average $45.50/cwt., up from $44.00-46.00/cwt., ($880-920/nt or $970-1,014/mt) several weeks earlier. Reports continue to circulate about shrinking supply availability at Gulf Coast and East Coast supply warehouses forcing sellers to seek higher pricing shrinking inventories of available spot supply.
Because of ongoing Section 232 steel tariffs of 50 percent, imports were expected to total a mere 50 thousand tons during the 4th quarter, importers said. Imports are expected to rise in Q1 as domestic inventories shrink and import pricing becomes more competitive.
On the US East Coast, import rebar on a loaded truck basis was assessed flat versus week-ago levels at $44.00-47.00/cwt., ($880-940/nt or $970-1,036/mt), recently on par with US Gulf Coast pricing.
On the import wire rod front, US Gulf Coast import pricing for wire rod mesh on a DDP loaded truck basis remains steady for yet another week at $42.00-43.00/cwt., ($840-860/nt or $926-948/mt).