US import long steel pricing remained stable this week in thin trade ahead of next week’s US Christmas holiday, market insiders told SteelOrbis. Higher December scrap prices, they said, appear to be balanced by lower seasonal demand for finished long steel products, keeping pricing steady versus week-ago levels.
Long steel market insiders told SteelOrbis a seasonal lull in finished steel demand could limit further long steel price increases through the end of the year. Despite higher December scrap values, market insiders said US mills remain reluctant to increase long steel pricing more for fear of instigating an influx of new imports. Insiders added that continued slow US economic recovery is keeping domestic long steel demand “steady but limited,” even as tariff-reduced rebar and wire rod inventories continues to be an issue, especially on the US Gulf Coast.
As previously reported by SteelOrbis, preliminary census data from the US Department of Commerce shows US imports of rebar totaled 36,016 metric tons in August this year, down 40.8 percent month on month and down 43.1 percent year on year.
“The only interesting thing of note this week is that US scrap [for January]]continues to move higher,” said one US Midwest long steel importer. “Regardless of potentially higher scrap, long steel pricing is unlikely to move much higher through the end of the year.”
This week, US Midwest scrap suppliers told SteelOrbis January scrap could increase $20-40/gt ($20-41/mt), though mill contacts said prices would more likely remain sideways to recent higher December settles. Shredded scrap closed December on average $20/gt higher at $385-390/gt ($391-396/mt).
Despite rising scrap, the insider added that US steel demand could be lower than many originally thought, he said. “It’s kind of too early to tell whether the recent push to get data center builds completed to accommodate AI will continue in the new year. I’m expecting import long steel prices to remain fairly flat as we head into Q1.”
On the US Gulf Coast, import rebar pricing on a loaded truck basis remains steady at $44.00-47.00/cwt., ($880-940/nt or $970-1,036/mt), or on average $45.50/cwt., delivered to customer, 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 US Gulf Coast and East Coast supply warehouses prompting sellers able to seek higher pricing, to do so for shrinking available spot supply.
On the mill side, on Nov. 7, Charlotte, North Carolina-based Nucor increased its posted prices for rebar by $30/nt or $1.50/cwt., bringing spot prices to current levels. Insiders said as supplies remain tight as a result of tariffs, the Nucor price increase has been fully accepted by the market. No further posted rebar price increases have been announced by the mill since that date.
Insiders say 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 fourth week at $46.00-47.00/cwt., ($920-940/nt or $1,014-1,036/mt), just short though very near the stated import price threshold.
Long steel market insiders said ongoing 50 percent Section 232 steel tariffs would limit 4th quarter imports to a mere 50 thousand tons. Q1 imports, they said, are likely to rise as domestic inventories continue to dwindle and import pricing becomes more competitive with its domestic supply counterparts.
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), continuing at parity with US Gulf Coast pricing.
On the import wire mesh front, US Gulf Coast import pricing for wire rod mesh on a DDP loaded truck basis remained steady for yet another week at $42.00-43.00/cwt., ($840-860/nt or $926-948/mt). Traders told SteelOrbis importers could make additional inroads into the US engineered wire mesh market as Nucor announced another $40/ton ($2.00/cwt.) increase this past week.
At last report, it remained unclear whether US spot market will accommodate the higher price offers on engineered wire mesh this week from Nucor, though continued supply tightness in local markets could see more market acceptance of the increase following the holidays, especially if January scrap trades higher, insiders said.