US import long steel pricing was steady to higher this week on continued supply limitations as imports dwindle, even as domestic demand remains steady though unremarkable, long steel insiders told SteelOrbis this week.
Insiders said supplies of pre-tariff rebar and to a lesser extent, wire rod, at US Gulf Coast-based warehouses are continuing to drop, and that suppliers are starting to seek higher pricing for what’s still available.
On the US Gulf Coast, import rebar pricing on a delivered basis moved slightly higher following two weeks of steady pricing to on average $44.00-46.00/cwt., ($880-920/nt or $970-1,014/mt), up from $44.00-45.50/cwt., ($880-910/nt or $970-1,003/mt) one week earlier amid more reports of shrinking supply availability at Gulf Coast warehouses.
“There’s quite a bit of an import rebar supply shortage in Houston,” reported one rebar import insider. “Before June, import supply was priced at $37.00/cwt., now, it’s pricing at around $45.00/cwt., because of supply scarcity”
“Import arrivals are down 3 percent year to date through August,” remarked another US Gulf Coast rebar importer to SteelOrbis. “And, Q4 arrivals are expected to be minimal.”
On the US East Coast, import rebar on a loaded truck basis remains unchanged for a third week at $44.00-46.00/cwt., ($880-920/nt or $970-1,014/mt).
And while some long steel insiders told SteelOrbis they expect limited import shipments to arrive in the US from Korea and Turkey in the near term, others importers said business remains “not great” despite continued reports of “tightness” from domestic mills. Continued market and economic uncertainty, they said, might be discouraging restocking and holding of long steel inventory.
“I can tell you that I quote rebar pricing every day, both fabricated and straight bar, and the margins are not attractive,” said one US East Coast rebar import insider. “The level of speculative buying remains minimal,” he added. “People are asking themselves why they should speculate on rebar, hold it through the winter, and then hope pricing stays up. It’s easier to just pass the supply on, and then hedge it.”
This week, metals futures prices have been in decline. On the London Metals Exchange, media reports indicate rebar futures prices fell sharply, pressuring nickel, mostly used to make stainless steel, and zinc, mainly used for galvanizing steel, to eight-month and three-week lows, respectively. Media reports indicate China could allow its northern provinces to set their own production curbs over winter, meaning a potential continued overabundance of cheap Chinese steel.
In the wire rod segment, US Gulf Coast import pricing for wire rod mesh on a DDP loaded truck basis remains steady at $42.00-43.00/cwt., ($840-860/nt or $926-948/mt).
As previously reported by SteelOrbis, US long steel mills continue to allocate supply because of ongoing sharp reductions in imports, the result of ongoing 50 percent steel tariffs, even as 4th quarter mill maintenance operations continue. Spot prices are likely to remain little changed near term, they say, as US infrastructure spending continues to lag, even though long steel demand from data center construction activities, and spending for AI operations, continues to lend limited price support for long steel.
On the raw materials front, November shredded scrap pricing is projected to settle sideways for a third week, SteelOrbis surveys show. During October scrap supply negotiations, US Midwest shredded scrap -a key US grade referenced in domestic rebar production- settled $10/gt less than September on average $365-370/gt ($371-376/mt). Insiders say recent US mill additions to domestic rebar production have yet to have a significant impact on reducing spot price levels, even though tariffs continue to slash imports.