Despite many market sources predicting another extension of Section 232 exemptions for certain countries, the Trump administration announced this week that major trading partners Canada, Mexico and the EU would now be subject to the 25 percent tariffs. Sources tell SteelOrbis that traders are “scrambling” to deal with orders that have not yet reached US ports, and for the time being at least, new inquiries are “nonexistent.”
Canada is currently the largest source of US import wire rod by far, comprising over half of all US wire rod imports in the last six months, while Germany has been a somewhat consistent source as well. Now that both countries are subject to tariffs, sources say alternative sources might “pop up” now that “everyone is on a level playing field,” with the exception of Brazil, another major source of US wire rod imports that struck a deal with the US to impose quotas instead of tariffs.
The last-heard offers for imported wire rod in the US domestic market from Brazil were around $34.00-$36.00 cwt. ($680-$720/nt or $750-$794/mt) DDP loaded truck in US Gulf ports, and while offers have not changed in the last week, sources say prices could rise slightly so that the margin between Brazilian wire rod and “everyone else” isn’t too wide.