US import rebar and wire rod prices were steady to lower this week in limited new trade as domestic demand remains unremarkable even as reports of high inventories continue, market insiders told SteelOrbis.
Despite across-the-board 25 percent import tariffs, an increase in the volume of US finished steel imports into US ports continues to pressure prices, as international suppliers attempt to maintain cash flow at a time when global steel demand remains unremarkable and scrap pricing is on the decline.
“With May scrap prices down $40/gt ($41/mt), some people believe that there will be more deals done at (lower) prices,” one US Gulf Coast rebar importer said. During the May scrap negotiations that concluded this week, Midwest shredded scrap settled down $40/gt ($41/mt) from its April counterparts at $375-380/gt ($381-386/mt).
Imported rebar supply remains high on the US Gulf Coast, insiders said, adding that supply on a loaded truck basis at the US Gulf Coast and US East Coast declined yet another $0.50/cwt., to $35.00-37.00/cwt., or on average $36.00/cwt., or $720/nt ($794/mt), off from $35.50-37.50/cwt. ($720-760/nt or $794-838/mt) one week earlier. May import shipments from Egypt, Algeria and Vietnam for late-June-late-July delivery into the US Gulf Coast are last discussed flat versus one week ago at $35.50-36.50/cwt. ($710-730/nt or $783-805/mt).
In the Mexican long steel export market, trading remains flat and quiet with ongoing 25 percent tariffs continuing to limit available May spot trading opportunities, import insiders said. Import rebar on a loaded truck basis vicinity Houston, Texas, from available US stock is reported steady at $36.75-38.75/cwt. ($735-775/nt or $810-854/mt).
Insiders told SteelOrbis that as Section 232 steel tariffs of 25 percent are now in effect, import shipments of rebar from North Africa, Malaysia, and Vietnam are likely to rise as buyers adjust existing supply chains to make up for supply shortfalls from previous sales originating out of Bulgaria and the Ukraine, countries that were previously exempt from import tariffs.
In other import rebar markets, pricing for import rebar on a CFR, free-out basis at the US Gulf Coast was discussed flat at $605-625/nt ($667-689/mt), following recent declines from $615-635/nt ($678-700/mt) two weeks ago.
The price of imported wire rod mesh on a DDP loaded truck basis was flat at $36.50-37.50/cwt. ($730-750/nt or $805-827/mt), following week-ago declines of $0.50/cwt. or $10/nt.
In the domestic long steel markets, rebar supply on an FOB mill basis is assessed with most transactions noted steady at $37.50-39.00/cwt. ($750-780/nt or $827-860/mt), on average $38.25/cwt. “The domestic rebar market is flat, but the demand is steady,” commented one long steel market insider to SteelOrbis. Domestic wire rod pricing was $0.50/cwt. ($10/nt) less as wire rods from Liberty Steel are now being sent into the May spot markets following the recent Peoria, Illinois plant restart, insiders said.