US import rebar and wire rod prices were unchanged this week following a February 10 announcement by the Trump administration to re-institute new far-reaching Section 232 tariffs of 25 percent on all steel and aluminum imports from countries seeking export into the US.
The new Section 232 tariffs come in response to what the administration believes are unfair trading practices and a global excess of steel capacity, which continues to harm the competitiveness of the US steel industry.
The measures will apply to imports from Canada, Brazil, Mexico, South Korea, as well as other countries that had been entering the US duty free under previous Biden carve outs.
Long steel market experts told SteelOrbis that tensions with the US’ two largest trading partners Canada and Mexico remains high, as it remains unclear whether earlier announced 25 percent blanket tariffs on all incoming product imports from Canada and Mexico -that were later delayed by 30 days- would be added to the newly instituted Section 232 tariffs.
“My Canadian clients are all freaked out over the uncertainty over the new tariffs,” said one import rebar market insider, “because it could have real consequences on the market if the tariffs are doubled, meaning a 50 percent tariff for Canada.”
Media reports indicate a potential combined 50 percent tariff on Canada could go into effect on March 12, stoking concerns with the US’ largest trading partner, though no further information on potential “stacking” of tariffs was available for Mexico as of press time.
In the imported rebar markets, pricing was steady from a week ago on reduced demand as uncertainty remains over import tariffs. Offers from Egypt are reported flat on a delivered-to-customer basis at $35.00-36.00/cwt. (700-720/nt or $772-794/mt), off from an average $36.50/cwt. ($730/nt or $805/mt) two weeks earlier. Offers from Vietnam for May delivery are last discussed at $33.00/cwt. ($660/nt or $728/nt) delivered, while offers from Mexico on a Houston loaded truck basis remain “off the table” following the tariffs announcements. At last report Mexican pricing was discussed at $37.00-38.00/cwt. ($740-760/nt or $816-838/mt), following last week’s announced 30-day delays of the earlier trade tariffs.
Import rebar on a loaded truck basis at the US Gulf and US East Coast is discussed flat at $35.00-36.00/cwt. ($700-720/nt or $772-794/mt), unchanged from a week earlier.
On the import wire rod mesh front, import material on a DDP loaded truck basis USG remains flat at $37.00/cwt. ($740/nt or $816/mt), following earlier price strength as US markets moved higher amid continued uncertainty regarding the planned restart of the Liberty Steel wire rod plant in March.
Long steel market insiders said they expect domestic mills to increase wire rod prices as early as next week on continued limited supply with several recent plant outages, and following increases this week in domestic rebar pricing by Nucor.