US import rebar and wire rod prices fell this week, following fairly steady pricing recently. This was due to reports of increased imports of finished long steel, high existing inventory on the US Gulf Coast, and signs of continued weakness in June scrap prices, although less so than earlier in the week, according to long steel insiders who spoke to SteelOrbis.
“A more consistent lower June scrap outlook is starting to exert a little downward pressure on long steel pricing,” said one import rebar insider. 'Rebar has been quiet as domestic demand has remained minimal, so customers are starting to get a bit jittery.” He added: “We're seeing lots of importers bringing in shipments, and as a result, the US supply situation with regard to wire rod is starting to correct itself.”
The insider said that output from the recently restored Liberty wire and rod steel plant is increasing, with further increases possible over the coming weeks.
“We’re seeing increased supply availability,” the insider said.
On the US Gulf Coast, import rebar on a loaded truck basis in the Houston area is priced at around $0.50/nt ($11/mt), which is approximately $10/nt ($11/mt) lower than last week, at $35.00-36.00/cwt. ($35.50/cwt on average), down from $35.00-37.00/cwt. ($36.00/cwt on average), or $720/nt ($794/mt) one week earlier. Insiders said that sales from Egypt, Algeria and Vietnam for late June–early July delivery continue to dominate the export market to the US Gulf Coast, where supplies remain high.
In the Mexican rebar markets, insiders reported minimal sales in the US from existing inventory on a loaded truck basis in Houston, Texas, at $36.00-38.00/cwt. ($720–760/nt or $794-838/mt). This is about $0.75/cwt. less than last week. However, insiders said that further sales at these prices could be scarce, as further declines in domestic rebar values could make future trades at these prices uncompetitive.
According to insiders, exports of rebar and wire rod from Canada and Mexico to the US remain limited while the 25 percent steel tariff remains in place, pending global trade and tariff discussions with the Trump administration in the US.
“There’s a lot of protectionism going on right now with the tariffs,” he said. “The Canadians who were active in the mid-month wire rod markets have been really quiet because they're basically locked out of the low-carbon market with their prices at $46.00-47.00/cwt, while US prices are at $44.50-45.50/cwt.”
Insiders told SteelOrbis that the 1.63 million tons of new annual rebar capacity added at three new mini-mills, which are expected to be operational by the third quarter in the US, was built to address the anticipated growth in infrastructure development projects for new and existing bridges, roads, and tunnels, as part of the Infrastructure Investment and Jobs Act.
“The recent start-up of the 700,000-ton-per-year Hybar rebar mill in Arkansas is expected to put downward pressure on rebar prices,” another rebar insider recently told SteelOrbis. “And while rebar prices could fall as more capacity comes online, scrap prices could rise.”
In the US scrap market in June, prices which were heard earlier this week at discounts of $30–40/gt have begun to moderate, according to insiders, with the latest expectation for June now being a soft sideways movement of $10–20/gt less than in May. “Shred and primes could lead the decline at $30–40/gt discounts,” one scrap dealer told SteelOrbis earlier this week. “I still think we’re looking at soft sideways for June, with Midwest busheling likely to perform the best,” said another scrap dealer as this report went to press.
