US import rebar and wire rod prices were steady to a bit lower this week, following steady to lower Ohio Valley July scrap prices and continued low construction-related demand, market insiders told SteelOrbis this week.
Even as most prices remained flat week on week, insiders continue to say domestic steel mills continue to command the lion’s share of new business, given the higher risk of imports, the availability of producer discounts, and a price spread between imports and domestic supply that remains too narrow for traders to choose the import option.
“Margins are tight, though most customers are okay and continue to be busy with the market trending down,” said one Mexico-based rebar market insider. “In some areas like Houston, the market was muted because last week’s hurricane (Beryl) disrupted supply.”
In the import rebar markets, US East Coast loaded truck basis rebar was steady on the week following previous weekly declines at $37.00/cwt, ($816/mt or $740/nt), while US Gulf Coast loaded truck rebar was also steady at $36.50/cwt., ($805/mt or $730/nt), market insiders said.
Imports from Egypt remain unchanged on the week in lethargic trade at $37.00/cwt. ($816/mt or $740/nt), delivered US port, while Bulgarian and Algerian exports to US ports were steady at $36.00/cwt. ($794/mt or $720/nt) and $36.50/cwt. ($805/mt or $730/nt) delivered US port, respectively, market insiders said.
In the imported wire rod markets, wire rod mesh DDP loaded truck USG was quoted flat once again at $36.50-$38.00/cwt. ($805 to $838/mt or $730-$760/nt). Wire rod mesh CFR FO USG declined $1.00/cwt. or $20/mt to $39.50/cwt. ($871/mt or $790/nt).
Market insiders said last week US domestic rebar pricing could be nearing its bottom, predicting prices would decline another $40/nt ($44/mt) on a delivered to customer basis before the market flattens out. Domestic rebar in the vicinity of Chicago was $0.25/cwt. ($5/mt or $5/nt) less this week at $36.75/cwt. ($810/mt or $735/nt) delivered to customer, following this past week’s 1.00/cwt. ($20/mt or $20/nt) decline to $37/cwt. ($816/mt or $740/nt), market insiders said.
Imported rebar from Mexico on a loaded truck Houston basis was slightly higher on the week as the ongoing ArcelorMittal steel plant strike, which was declared a formal strike on June 4, continues to curb available supplies, market insiders said. Mexican rebar is priced at $37.35/cwt ($823/mt or $747/nt) delivered truck Houston, up slightly from last week’s quotes at $37/cwt. ($816/mt or $740/nt). Deliveries of Mexican rebar to Chicago on a delivered truck basis, were priced “out of the market” at $38.50/cwt. ($849/mt or $770/nt), market insiders said.
