US import rebar and wire rod markets moved higher this week as uncertainty remains heightened regarding current 25 percent Section 232 tariffs on the US’ two largest trading partners, Canada and Mexico, as well as the upcoming start of reciprocal import tariffs on a selected group of nations expected to be enacted by the US Trump administration next week on April 2.
While media reports indicated March 21 that Trump was likely to be more “flexible” regarding who will be subject to the start of reciprocating tariffs next week, markets remain on edge about their effects on pricing as well as existing supply chains. Concerns are also heightened as a potentially more disruptive new Trump administration policy regarding to the movement of steel and other imported products into US ports on Chinese-made ships is expected soon.
Following a final March 26 US Trade Representative (USTR) public comment hearing attended by trade and shipping industry groups, a decision on potential fees to be charged on Chinese shipping could find between $1.5 million and $3.5 million, and could be levied on each Chinese-built ship seeking to offload cargo at US ports.
“If I was an importer, I wouldn’t touch anything from Vietnam or many Asian countries,” one long steel import insider commented to SteelOrbis. “The EU and Asian countries are a direct target of Trump’s reciprocating tariffs.”
Media reports indicate part of Trump’s increased flexibility on reciprocating tariffs involves a plan to target the world’s top 15 countries with the highest trade imbalance with the US. Those countries according to USTR based on the size of their trade deficit with the US are China, the EU, Mexico, Vietnam, Taiwan, Japan, South Korea, Canada, India, Thailand, Switzerland, Malaysia, Indonesia, Cambodia, and South Africa.
In the imported rebar markets, spot supply on a loaded truck basis at the US Gulf Coast and US East Coast rose about $0.25/cwt., or $5/nt ($6/mt), to $37.00-38.00/cwt. ($740-760/nt or $816-838/mt), up from $36.75-37.75/cwt. ($735-755/nt or $810-832/mt) one week earlier. May shipments from Egypt, Algeria, Turkey and Vietnam for June-July delivery into the US Gulf Coast are last heard 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) seven days ago.
“I can’t sell at $37.00/cwt. today,” remarked one import market insider on the slight weekly price increase. “As domestic prices remain pretty high, we’re expecting the price of imports to be more attractive over the next few months.”
Domestic rebar pricing fell a bit this week on reports of adequate supply and minimal new demand. Domestic supply on an FOB mill basis is assessed with most transactions noted at $39.00-40.50/cwt. ($780-810/nt or $860-893/mt), on average $39.75/cwt. ($795/nt or $876/mt), down $1.00/cwt. ($20/nt or $22/mt) from seven days ago.
Mexican markets remain quiet with import rebar on a loaded truck basis vicinity Houston, Texas, last offered from available stock in the US at $37.00-39/cwt. ($740-780/nt or $816-860/mt), up from $36.00-37.00/cwt. ($720-740/nt or $794-816/mt), one week prior.
On the import wire rod mesh front, import material on a DDP loaded truck basis USG was assessed higher at $38.00-39.00/cwt. ($740-780/nt or $816-860/mt), up from $37.50/cwt. ($750/nt or $827/mt) a week ago.