US domestic rebar prices rose this week while wire rod pricing remained steady as markets begin to trade following recent US steel and aluminum tariff increases imposed by US President Trump on June 4.
Price movement in daily spot markets also follows announcements from steelmakers Nucor, CMC, and DeAcero Steel, that they would increase rebar pricing between $60-100/nt this week. Insiders said prior to recent tariff increases, domestic mills were reluctant to raise prices for fear that higher domestic pricing would make imported products more competitive. With tariffs now up 25 percent to 50 percent for all imports, that scenario no longer applies, they said.
In the weekly rebar spot markets, domestic supply on an FOB mill basis was assessed with most transactions noted at $40.00-41.00/cwt. ($800-820/nt or $882-904/mt), on average $40.50/cwt. ($810/nt or $893/mt), up $2.50/cwt. from seven days ago. Insiders told SteelOrbis domestic rebar pricing could continue to trend upward as more customers adjust supply chains and supply portfolios to accommodate the new tariff policy.
And, while rebar prices were up, insiders said trading remains light due to ongoing reports of limited mid-month demand amid continuing reports of excess rebar supply in Texas due to previous pre-tariff purchases. Some insiders plan to wait until later in the month to purchase additional supply, they said.
“Some are waiting until June 20 to make any pricing adjustments because that is when anything on order has to be out (to customers) before the price increases can takes effect,” said one SteelOrbis insider.
In the domestic wire rod market, most transactions were reported this week at $44.50-45.50/cwt. ($890-910/nt or $981-1,003/mt), or an average of $45.00/cwt ($900/nt or $992/mt), unchanged from seven days ago. Insiders expect wire rod pricing will follow rebar pricing higher, once more trading ensues, especially since output from Liberty Steel remains limited, they said.
“There is still plenty of uncertainty surrounding the new tariff increase,” an insider told SteelOrbis. “Domestic mills seem to be happy with (the tariffs), but importers are still unsure.”
