US import rebar and wire rod pricing was mostly steady to slightly higher. Importers are facing higher delivered costs amid ongoing Section 232 steel tariffs and are finding few buyers willing to accept higher price offers, even as domestic prices continue to trend steady to higher, market insiders told SteelOrbis this week.
According to insiders, the June 4 doubling of steel tariffs from 25 percent to 50 percent could increase the delivered price of imported supplies by $6.00-$7.00/cwt., rendering much imported material uncompetitive against domestic supplies. Unless in-transit cargoes are sold at distressed prices, higher import pricing will enable domestic producers to raise prices further, potentially allowing importers to squeeze in limited sales at some point, they said.
“On the import rebar side, we heard offers at $42.60/cwt ($852/nt or $939/mt) upriver barge and another at $41.95/cwt ($839/nt or $925/mt) for September arrival, but we’re not seeing much traction with no new sales concluded,” one import rebar market insider told SteelOrbis.
Since the week of June 4, when new 50 percent tariffs were announced, SteelOrbis data shows that the average domestic rebar price has risen 6.6 percent to $40.50/cwt. ($810/nt or $893/mt), while the average import rebar price has risen 16.9 percent to $41.50/cwt. ($830/nt or $915/mt). For wire rod, domestic and import prices have remained fairly steady, rising an average of 2.2 percent to an average of $46.00/cwt. ($920/nt or $1,014/mt).
“International long steel pricing hasn’t changed much, but tariffs are up,” commented another long steel importer. “Sellers aren’t offering too much supply right now because, with the ongoing 50 percent tariffs, import pricing just doesn’t work. However, we might get some more room on the import side with July scrap seen steady to higher.”
Following a mostly sideways June scrap settlement, July scrap is currently seen as steady to potentially higher, mostly due to expectations of fairly steady domestic demand from mills in the third quarter and potentially higher export demand for scrap next month, according to insiders.
On the US Gulf Coast, amid continued reports of high inventory, import rebar on a loaded truck basis in the Houston area was last offered at $41.00-$42.00/cwt., or an average of $41.50/cwt., steady with a week earlier but up from $35.00-$36.00/cwt., or an average of $35.50/cwt., two weeks ago. Inventory from Mexico staged in Texas on a loaded truck basis is offered at $40.00-$42.00/cwt., up from $39.50-$40.00/cwt. one week earlier. However, trading remains muted.
“Import offers have stabilized at higher levels supported by tariffs and limited new offers,” a Mexican long steel insider told SteelOrbis.
In the imported wire rod segment, pricing increased this week, though trading remains scarce, due to increased competition from domestic suppliers. Most transactions are priced at $45.50-$46.50/cwt. ($910-$930/nt or $1,003-$1,025/mt), up from the previous week's average price of $45.00/cwt. ($900/nt or $992/mt).
According to insiders, the recent $40/nt price increase for domestic wire rod from steelmaker Nucor is expected to maintain strong wire rod pricing in the near term. Most of the price increase is expected to be accepted by the market, especially since import prices on the US Gulf Coast are near parity. The future of domestic wire and rod production from Peoria, Illinois-based Liberty Steel remains uncertain, as insiders tell SteelOrbis that “some issues remain with the plant.”
