US import rebar and wire rod pricing was flat to a bit less this week amid continued limited demand for imports amid fear that current 25 percent steel and aluminum import tariffs on US consumers might further reduce demand for rebar, wire rod and other construction-related building materials during this year’s spring construction season.
“The tariff situation is now clearer for steel,” said one long steel importer. “Everyone is at 25 percent tariff, without any exceptions. We’ll see, but on the demand side, many are saying that higher prices expected for many building supplies and even machinery could delay or put more spring construction projects on hold.”
Insiders also fear recent tariffs could potentially result in a US and potentially global recession, further reducing demand for structural steel.
“The tariffs could result in other problems for the US,” the insider added. “We could see a recession creeping in, which could result in long term declines for steel for the construction sector of the economy.”
In the imported rebar markets, spot supply on a loaded truck basis at the US Gulf Coast and US East Coast was reported little changed at $36.50-38.50 cwt. ($730-770/nt or $805-849/mt), or on average $37.50/cwt., versus $37.00-38.00/cwt. ($740-760/nt or $816-838/mt) one week ago. 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).
On the import wire rod mesh front, import material on a DDP loaded truck basis USG is discussed slightly less at $37.00-39.00/cwt. ($740-780/nt or $816-860/mt), off from $38.00-39.00 cwt. ($760-780/nt or $838-860/mt), one week ago.
In the Mexican markets, trading remains quiet as tariffs limit available trade opportunities. Import rebar on a loaded truck basis vicinity Houston, Texas, is last offered steady from available stock flat at $37.00-39.00/cwt. ($740-780/nt of $816-860/mt), though up from $36.00-37.00/cwt. ($41.00-42.00/mt) in late March.
“Customers still have plenty of questions about these Section 232 tariffs applied on Mexico and Canada,” said one Mexican long steel supplier. “They are trying to assimilate the current prices in the marketplace, and some of them have even started to place orders for MBQ and beams.”
In the weekly domestic rebar spot markets, supply on an FOB mill basis is assessed with most transactions noted at $38.50-40.00/cwt. ($770-800/nt or $849-882/mt), on average $39.25/cwt. ($785/nt or $865/mt), down $0.50/cwt. ($10/nt or $11/mt) 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.
