US import rebar and wire rod pricing continued steady to down this week on a combination of continued uncertainty over approaching country-specific reciprocal tariffs and amid reports of limited demand for imports, market insiders told SteelOrbis.
Like a week before, insiders told SteelOrbis demand for import material remains limited following the June 4 implementation of 50 percent steel tariffs, while 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.
This week, US President Trump sent personalized letters to the US’s major steel trading partners, Brazil, Canada, Mexico and South Korea. In those documents, tariff rates to take effect Aug. 1 were announced at 50 percent for Brazil; Canada, 35 percent; Mexico, 30 percent; and South Korea, 25 percent.
Importers facing higher delivered costs amid ongoing 50 percent Section 232 steel tariffs, report few buyers as of yet willing to accept their higher offers versus domestic material, even as domestic long steel prices continue to moving higher since tariffs went into affect.
This week, steel maker Nucor announced that it would be increasing its published prices for wide-flange beams, standard beams, channels, MC’s,” angles, and piling products between $40-60/ton ($2.00-3.00/cwt.) effective with new orders received on Monday July 14. All confirmed orders as of the close of business on July 11 were to be price protected if shipped before Aug. 2, Nucor said. Steel maker CMC also announced a $4.00/cwt., size extra price increases for #3, #14, and #18 rebars. “Those sizes are are least productive for mills to produce, that’s why they’re charging an extra,” remarked the Gulf Coast steel insider.
“Imports are struggling, with traders purchasing hand to mouth as a result of continued uncertainty over tariffs,” remarked the Gulf Coast long steel importer. “Markets are not all that active, and as a result, we’re seeing a lot of tire kicking going on because nobody wants to buy too much given the current situation.”
On the US Gulf Coast, even as reported high pre-tariff inventory continues to be drawn down, import rebar on a loaded truck basis vicinity Houston is offered steady at $39.50-40.50/cwt., unchanged versus a $39-41/cwt., market the week before. “We’re seeing a higher lows and a lower high on the market this week, which signals that the market is looking for direction,” said another Midwest long steel insider.
“We’re still hoping that Canada and Mexico will receive special treatment on steel from the Trump administration on tariffs before the Aug. 1 deadline, so very little is happening right now,” the Gulf Coast insider added.
Insiders reported rebar inventory from Mexico staged in Texas on a loaded truck basis is offered unchanged on the week at $39.50-42.50/cwt., still little changed versus previous $40.00-$42.00/cwt., workable trading ranges reported several weeks earlier to SteelOrbis
“The tariff environment, unfortunately, is limiting pricing flexibility and increasing risk premiums, even as overall volume availability remains manageable for now,” said one Mexican import insider that sells into the US. “For now, we’re seeing a market defined by uncertainty and patience,” he added. “We’re advising our customers to maintain flexibility and avoid overextending inventories.”
In the import wire rod segment, pricing moved lower as local demand flags and domestic wire rod output appears to be improving from the Peoria, Illinois-based Liberty Steel wire and rod plant, insiders said. This week’s workable import trade offers are heard on a loaded truck basis at $43.50-44.50/cwt., off from $45-46/cwt., one week earlier.
Some insiders predict US steel prices could move sharply higher in August as reduced imports from key steel suppliers to the US begin to impact local markets.
According to US Commerce Department Steel Import Monitoring and Analysis statistics aggregated by the Washington-based American Iron and Steel Institute (AISI), in the first half of this year, the three largest suppliers of imported steel to the US were Canada (2.77 million tons), Brazil (nearly 2.59 million tons) and Mexico (1.7 million tons).
