US imported rebar and wire rod prices were mostly stable again in weekly spot markets as market participants remain largely sidelined waiting more clarity from the US Trump administration regarding current and upcoming tariffs on imported steel, market insiders told SteelOrbis this week.
In addition to current 25 percent global import tariffs levied on steel and aluminum that went into effect on March 12, new proposed reciprocal tariffs for all nations seeking export into the US are slated to begin April 2, meaning a potential shift in global supply chains could be in order, as new trade policies also eliminate previous general and country-specific tariff exclusions, as well as cover all listed derivative steel products, such as automotive, construction, and consumer products. “Melted and poured” as well as “smelted and cast” reporting is due for all steel articles and their derivative products.
In the imported rebar markets, following a recent $1/cwt., or $20/nt ($22/mt) increase leading up to the start of new Section 232 tariffs, pricing for import rebar on a loaded truck basis at the US Gulf and US East Coast remains flat at $36.75-37.75/cwt. ($735-755/nt or $810-832/mt). New offers from Egypt, Algeria, Turkey and Vietnam for June-July delivery into the US Gulf Coast are heard mostly flat on a delivered-to-customer basis at $37.00-38.00/cwt. ($740-760/nt or $816-838/mt).
“Prices are still adjusting to tariff announcements from last week, so they are flat, especially with Canada and Mexico out of the market” said one East Coast rebar importer. “It’s crazy man...not good times,” he added. “With these tariffs, the market is very unstable for any importer.” He continued, “Upcoming reciprocal tariffs in April might level the playing field or potentially make it worse.”
The level of uncertainty in this week’s domestic long steel spot market is evident in that even as March domestic scrap prices advanced $25-30/gt ($25-30/mt), US domestic mills were reluctant to announce additional rebar price increases for fear that continued advances in price could make imports a more viable alternative.
Recent data from the US Department of Commerce seems to support this conclusion. According to preliminary census data from the US Department of Commerce, US imports of rebar totaled 166,058 mt in January this year, up 191.1 percent month on month and up 310.5 percent year on year. The US imported the most rebar from Turkey in January with 29,953 mt. Other top sources of imported rebar in January include Bulgaria with 29,789 mt, Mexico with 28,663 mt, Algeria with 28,602 mt, and Vietnam with 17,687 mt. Several of these nations were excluded from import tariffs under prior Section 232 tariff exclusions enacted by the Biden administration.
With the revised US trade policy expected to eliminate tariff exclusions, it remains unclear at this time who will have to pay more for what. And, while its generally expected that Trump could reduce or eliminate some level of current tariffs on the US’s key trading partners Canada and Mexico to maintain the fragile USMCA agreement negotiated in his first term, it remains unclear at this time what the new trade measures mean for the rest of the world. As a result, insiders told SteelOrbis market import activity remains subdued.
Mexican markets remain mostly quiet with import rebar on a loaded truck basis vicinity Houston, Texas, last offered from available stock in the US at $36.00-37.00/cwt. ($794-816/mt), off from a reported $38.00-40.00/cwt. ($760-800/nt), or $838-882/mt seven days ago.
One Mexican import rebar supplier was offering up to 10,000 tons a month of previously pre-positioned rebar from stock in the US as a way to avoid the current 25 percent tariffs. “We normally do 8,000 to 15,000 tons a month (of exports), so this (supply should be available) for the next 3-4 months,” he said. “Before that time, we’re hoping that Trump will re-negotiate the USMCA agreement and do away with these tariffs.”
On the import wire rod mesh front, import material on a DDP loaded truck basis USG was assessed steady at $37.50/cwt. ($750/nt or $827/mt). With tariffs, insiders said import wire rod pricing is likely to remain a less attractive option even as domestic prices are expected to rise following recent $50/nt ($55/mt) increases in wire rod prices from steelmakers Nucor, CMC and Optimus Steel, market insiders told SteelOrbis. Even as recent price increases remain not fully accepted by the market, wire rod values will likely remain strong as output from Liberty Steel’s wire rod plant in Peoria, Ill. likely won’t be available until at least the end of April.
In other related news, market insiders said concerns are growing regarding new shipping fees likely to be levied against Chinese shipping calling at US ports. President Trump’s new appointment to head the Federal Maritime Commission, Louis Sola, recently told the Financial Times, “We need to offset the subsidies that China has given their own shipbuilding industry. Where should that money go to,” he said. “That money should be invested into American shipping.”
Measures proposed by the US Trade Representative (USTR) could add fees of up to $1.5 million on Chinese-built ships calling at US ports. In 2024, more than 36,000 ships could have been affected by the proposed measures, which would have generated annual fees amounting to more than $52 billion, according to data from ship broker Clarksons.
“To boost our defense industrial base, we are also going to resurrect the American shipbuilding industry, including commercial and military shipbuilding,” Trump told lawmakers recently.