US import rebar and wire rod prices were steady to slightly down this week, following reports of limited declines a week earlier, as reports continued that a recent increase in long steel imports from South Korea might be staging to pressure prices further, market insiders told SteelOrbis. Rising US shredded scrap prices, they added, were also expected to increase the spread between import and domestic long steel prices, potentially making more room for imports to once again be competitive.
“Long steel imports are all about South Korea right now,” remarked one US Midwest-based long steel importer. “We’re hearing reports that more steel may have arrived on the US Gulf Coast from Korea from the Pacific side through the Panama Canal in the $44.00-45/cwt. range ($880-900/nt or $970-992/mt).”
One report of a potential South Korean rebar offer today (Feb. 5) at $42.00/cwt. was largely discounted as non-inclusive of on-shore stevedoring charges, currently estimated at $1.00-$3.00/cwt, insiders said.
“Imports to the US are improving, but are not yet disruptive,” said another Gulf Coast-based long steel insider to SteelOrbis. “Import rebar prices remain largely steady, but the discount to domestic pricing has narrowed.”
On the US Gulf Coast, import rebar on a loaded truck basis is reported a bit less on the week at $44.00-45/cwt, off $1.00/cwt or $20/nt from from recent SteelOrbis weekly estimates amid reports of improved inventory. Insiders said delivery to US East Coast ports will add an additional $20/ton to $45.00-46/cwt., ($900-920/nt or $992-1,014/mt), steady on the week.
“Import pressure is increasing at the margin, but availability remains constrained by tariffs, duties, and long lead times,” the US Gulf Coast long steel importer added.
In the US scrap markets, February US Midwest shredded scrap often used in EAF rebar production is trading at $30/gt premiums to earlier January settles at $445-450/gt ($452-457/mt), meaning US mills are facing further increases in steel production costs. Market insiders said rising scrap could mean another round of long steel price increases are forthcoming from US mills, further narrowing the price advantage between domestic and import long steel.
In early January, Charlotte, North Carolina-based Nucor announced a $30/nt rebar price increase, following an earlier $30/nt increase during November.
In the import wire rod markets, insiders said tightening domestic supplies could increase demand for shipments from Malaysia and Vietnam, though long lead times were a significant consideration.
“Liberty Steel is not producing well,” said one US Midwest long steel importer. “It is getting a little uncomfortable for the wire rod guys. They are sputtering and looking outside for imports.”
Weekly SteelOrbis average wire rod mesh import pricing on a DDP loaded truck basis remains stable for now at $43.50-44.50/cwt., ($870-890/nt or $959-981/mt).