US import rebar and wire rod pricing is trending steady to higher this week, following the June 4 doubling of steel and aluminum tariffs by the US Trump administration. Insiders said the doubling of steel tariffs from 25 percent to 50 percent could increase import pricing by $6-7/cwt., making most imported material non-competitive against domestic supply.
While trading of import products is expected to remain minimal as country-specific tariff levels are negotiated with the US, the replacement cost for current import inventory on the ground remains substantially higher. The profitability of in-transit rebar and wire rod cargoes destined for US ports remains uncertain, insiders say.
“Prices are up, and are likely to continue higher,” said one import insider to SteelOrbis. “However, US demand is still pretty minimal, so, nobody wants to buy too much.”
On the US Gulf Coast, import rebar on a loaded truck basis in the vicinity of Houston is last offered at $41.00-42.00/cwt., or on average $41.50/cwt., up from $35.00-36.00/cwt., or on average $35.50/cwt., one week earlier. Inventory from Mexico staged in Texas on a loaded truck basis is offered at $39.50-$40.00/cwt., up from $38.00-$40.00/cwt., one week earlier.
Insiders claim importers stand to lose significant revenue as a result of the doubled import tariffs, with incoming cargoes likely to be sold on a distressed basis upon entering US ports where tariffs will be assessed. While high tariffs remain in play, insiders say import trade is likely to be mostly dominated by more modest deliveries of specialty steel, which will be better able to accommodate the sharply higher price.
“Importers and traders stand to not make much money right now,” claimed an import insider. “With people having to pay an additional 25 percent, who’s going to buy those cargoes?” he said. “Many of them are likely to be distressed unless domestic prices go up substantially.”
Domestic rebar pricing rose this week following announcements from several domestic mills and suppliers, namely Nucor, CMC and DeAcero, that they would increase price offers from $60-$100/nt on new June sales. Wire rod pricing remained flat, though like rebar, insiders expect mills to announce further price increases soon affecting wire rod, especially given the continued uncertainty regarding continued output from the Liberty Steel wire and rod mill in Illinois.
One domestic rebar trader gave his opinion of the current domestic long steel market in light of the new import tariffs. “It’s simple really,” he said. “As prices are going up, buying becomes more hand to mouth. Buy when you have to have,” he added. “If we thought (pricing) would keep going up, we would buy some spot tons, but we are not certain that that is going to happen, and to try to make an extra $60 a ton on a couple of loads is not worth the risk.”
In the import wire rod market, pricing remains steady for a third week in limited trade with current import supply on offer at $45.00/cwt. ($900/nt or $992/mt), compared with domestic supply which remained steady on the week at $44.50-$45.50/cwt.
“The (future) trend is strongly higher for wire rod,” the import insider added. “Even for rebar, after already having gone up by two to three dollars a ton.”
