Following a brief price increase a week earlier, US import rebar and wire rod pricing was stable this week in limited trade as markets continued to react to announcements made April 2 by US President Trump about new reciprocal tariffs on an expansive list of nations exporting to the US.
While the new reciprocal tariffs do not apply to steel imports, Trump set a 10 percent minimum “baseline” tariff effective April 5, on all nations moving other products into the US, as well as put in place country-specific reciprocal tariffs effective April 9, equivalent to one-half the rate other nations now charge the US, he said.
Long steel market insiders said expanded 25 percent Section 232 tariffs on the metals put in place March 12, could slow domestic construction activity this spring because the price of imports and other non-steel construction-related building materials are likely to soar as the financial reality of tariffs come into play during the key second quarter.
According to a recent Wall Street Journal report, tariffs already are having an impact on various construction products, with “the rising costs for screws rippling through manufacturing supply chains.” Manufacturing executives, the report said, believe the US does not have the plant capacity to replace the amount of steel wire or screws needed to displace imports. The report further says some construction contractors may delay projects until they get a better handle on a way to blunt the effects of tariffs, as about $178 billion of steel and aluminum products imported into the US in 2024 are now subject to 25 percent tariffs, according to Jason Miller, a supply chain professor at Michigan State University.
“Prices are the same as last week, although at least our customers have more clarity with regards to the tariffs,” said one Mexican exporter of long steel products, reacting to the April 2 reciprocal tariff announcements from the White House. “For now, we will continue to be out of the market for rebar direct from our mills (in Mexico), though we will continue to sell products that were shipped to (locations) in the US before 25 percent Section 232 tariffs went into play on March 12.”
Mexican markets remain quiet with import rebar on a loaded truck basis vicinity Houston, Tx., last offered steady from available stock at $37.00-39/cwt, ($740-780/nt of $816-860/mt), though up from $36.00-37.00/cwt., ($41.00-42.00/mt), two weeks earlier.
In other imported rebar markets, spot supply on a loaded truck basis at the US Gulf Coast and US East Coast was reported stable at $37.00-38.00/cwt., ($740-760/nt or $816-838/mt), though up from $36.75-37.75/cwt., ($735-755/nt or $810-832/mt) two weeks earlier. May shipments from Egypt, Algeria, Turkey and Vietnam for June-July delivery into the US Gulf Coast are last heard stable at $38.00-39.00/cwt., ($760-780/nt or $838-860/mt), up from $37.00-38.00/cwt., ($740-760/nt or $816-838/mt) two weeks prior. Insiders said it’s likely that import pricing could begin to rise soon as new product offerings from nations previously exempt from 25 percent Section 232 steel tariffs enter the market at higher delivered price levels.
On the import wire rod mesh front, import material on a DDP loaded truck basis USG is assessed flat at $38.00-39/cwt. ($740-780/nt or $816-860/mt), though up from $37.50/cwt. ($750/nt or $827/mt) in reports two weeks earlier.
On Friday, April 4, China retaliated against the US for charging them a new 34 percent rate on exports to the US. According to US President Trump, China charges the US an average tariff of 67 percent. China said it would reciprocate with its own 34 percent tariff against the US effective April 10.
Further 25 percent import duties on automobiles went into effect April 3, while auto parts will be tariffed 25 percent in May. Mexico is the largest source for US auto imports, sending 12.5 million cars annually in 2024 to US dealerships, followed by Canada at 1.1 million. About 3.7 million vehicles come from outside North America each year from from South Korea, Japan and Germany.
In this week’s domestic rebar market, pricing remained flat amid reports of plentiful domestic supply with new spot trade discussed on an FOB mill basis at $39.00-40.50/cwt., ($780-810/nt or $860-893/mt), on average $39.75/cwt., ($795/nt or $876/mt), unchanged from seven days ago.
In the domestic wire rod market, most transactions were reported this week at $45.50-46.50/cwt. ($910-930/nt or $1,003-1,025/mt), or an average of $46.00/cwt. ($920/nt or $1,014/mt), up $2.50/cwt. ($50/nt or $55/mt) from seven days ago. Market insiders told SteelOrbis output from Liberty Steel’s wire and rod plant in Illinois is likely to remain limited until May or June.