US domestic rebar and wire rod prices remained flat for a fourth straight week, though insiders told SteelOrbis early monthly domestic scrap trade could provide the impetus for further price increases from US mills soon.
Insiders said recent increases in long steel prices have largely been the result of higher steel production costs, driven by the continued strength in local scrap values, even as rebar and wire rod imports remain slashed as a result of 50 percent steel tariffs. Cold weather across much of the US also was expected to delay or reduce scrap delivery to mills this month.
“Scrap is a big driver right now and may pull long product pricing higher because the market remains relatively tight,” remarked one US Midwest-based market insider.
In the weekly rebar spot markets, domestic supply on an FOB mill basis was assessed with most transactions noted at $48.00-49.00/cwt, ($960-980/nt or $1,058-1,080/mt), on average $48.50/cwt, ($970/nt or $1,069/mt), unchanged from a week earlier.
Following winter storms two weeks ago that were estimated to have affected more than 200 million Americans across more than 30 states, extreme cold is forecast to continue in major market centers in the US Midwest and Northeast regions over the next several days, before moderating to more normal temperatures.
And while weather was expected to moderate, recent record cold has caused key portions of the Ohio River to freeze over, reducing and delaying barge deliveries of steel scrap and other steel production components by as much as three days. Lake Erie, a major transportation route for steel making materials, was expected to freeze over fully this weekend, the first time in recent recorded history.
Insiders added that the increased use of available trucking resources for the delivery of road salt also was expected to affect regional scrap delivery. “The rates that salt customers are paying for delivery has been awesome for our trucks,” remarked one US Midwest scrap supplier. “They have been much better than scrap, which was never the case.”
At last report, US ferrous scrap for February delivery trades at $30/gt premiums across all scrap grades, meaning benchmark US Midwest shredded scrap used in rebar production might settle at $445-450/gt ($452-457/mt) later this week or early next.
In the southern US, insiders told SteelOrbis mills are working hard to meet customer demand for long steel, though weather continues to remain problematic.
Arkansas-based Hybar Steel is still producing despite the winter weather delays and stays the “primary swing [rebar] supplier,” according to one long steel insider.
In the domestic wire rod market, domestic supply on an FOB mill basis was assessed with most transactions reported steady at $48.00-49.00/cwt ($960-980/nt or $1,058-1,080/mt), or an average of $48.50/cwt ($970/nt or $1,069/mt).
“Liberty Steel is not producing well,” said one Midwest insider to SteelOrbis. “ It is getting uncomfortable for the wire rod guys. They are sputtering and looking outside for imports.”
Continued outreach by SteelOrbis to media officials at Liberty Steel remained unsuccessful at press time.
On the domestic long steel demand side, insiders report an improving industry sentiment for the depressed US construction industry, especially as the start of the spring construction season nears ahead of further cuts in interest rates, and ahead of approaching summer deadlines for government infrastructure funding requests under the $1.2 trillion Infrastructure Investment and Jobs Act.
In other news, Illinois-based Alton Steel, a key domestic producer of steel rounds, round-cornered squares, and bar-in-coil, closed its doors this past week, according to a report from St. Louis Radio. Reports cited “aging infrastructure, intense market competition, and industry consolidation.” The closure will mean layoffs for more than 250 employees, including contractors and vendors.
