US import rebar and wire rod pricing crept higher this week as threatened import tariffs on Canada, Mexico and China went into effect Tuesday, March 4. And while rebar and wire rod import prices were up marginally this week, market insiders told SteelOrbis further price increases could be in store from domestic mills ahead of the planned renewal of Section 232 tariffs on steel and aluminum imports which are planned by the Trump administration to take effect March 12.
As current import tariffs on Canada and Mexico already amount to 25 percent, these new so-called “stacked tariffs” on the US’ two largest trading partners could total to 50 percent. Current China tariffs stand at 20 percent, after Trump doubled them recently after he said the communist nation failed to take steps to cut the flow of deadly fentanyl into the US.
“Steel supply chains will likely try to absorb some of the tariff-inspired price increases as much as they can, however, whatever can’t be absorbed will have to be ultimately passed along to the customer, be it a manufacturer or another steel consumer such as fabricators,” one import long steel insider told SteelOrbis. “I don’t think the tariffs will create a big supply shortage in the US, however, it will likely cause prices to rise.”
In the imported rebar markets, prices rose about $1/cwt., or $20/nt ($22/mt) as importers said tariffs are likely to strain the available supply near term. Pricing for import rebar on a loaded truck basis at the US Gulf and US East Coast rose to $36.75-37.75/cwt. ($735-755/nt or $810-832/mt), following last week’s $15/nt ($17/mt) increase to $35.75-36.75/cwt. ($715-735/nt or $788-810/mt). Market insiders said new Section 232 tariffs which go into effect March 12 could make long steel imports from countries like Bulgaria and Ukraine non-competitive as unlike under the Biden administration, no exemptions from tariffs are to be expected under the Trump administration.
As market participants continued to wait to see whether tariffs went into effect, offers from Egypt rose on a delivered-to-customer basis to $37.00-38.00/cwt., ($740-760/nt or $816-838/mt), up from a prior weekly average $36.50/cwt. ($730/nt or $805/mt). No new offers were heard on May transits of import rebar from Vietnam, which was priced flat a week earlier at at $34.50/cwt. ($690/nt or $761/mt).
Following the start of tariffs, Mexican markets remain quiet with import rebar on a loaded truck basis vicinity Houston, Texas, last priced at $37.50-$39.50/cwt. ($750-790/nt or $827-871/mt).
On the import wire rod mesh front, import material on a DDP loaded truck basis USG was assessed steady following last week’s $0.50/cwt. ($10/t or $11/mt) gain to $37.50/cwt. ($750/nt or $827/mt). Traders said import wire rod pricing is likely to remain steady as commercial output from Liberty Steel’s wire rod plant in Peoria, Ill. likely won’t be available until at least the end of April.
“The domestic wire rod mills are pretty busy, but at this point there is no major uptick in pricing,” one market insider told SteelOrbis. “Liberty Steel has announced that they have secured financing and will reopen by the middle of (March). However, most, if not all, of their production will go to their downstream facilities, and they will enter the domestic market possibly by the end of April.”