US domestic rebar and wire rod pricing was flat this week versus seven days ago, as new construction-related demand remains limited and monthly scrap prices for July appear to be headed lower, market insiders told SteelOrbis this week.
The long steel market assessment is little changed from this past week, when prices trended down as finished steel demand continued to wane and a developing market consensus for the July scrap forecast began to turn consistently lower versus June.
US domestic rebar is assessed at $38/cwt. ($838/mt or $760/nt) FOB mill, unchanged from a wider-ranged $36-$40/cwt. ($794-$882/mt or $720-$800/nt) assessment seven days ago.
“The market is not much different than last week,” said one Midwest rebar dealer. “The general finished steel markets are down, so maybe we’ll see the (domestic) longs market follow.”
Market insiders say new trading remains muted as domestic steel mills wait on clues from the international markets to better position themselves regarding spot pricing schemes.
“With US scrap pricing expected to soften for July, US mills are still not seeing international pricing going where they want it to go, as import rebar is still in the high-$36.00/cwt. level ($835/mt or $735/nt, delivered to customer), said one Midwest rebar contact. “We think the US mills are going to wait until after the Fourth of July to start discounting their pricing to get things moving.”
US domestic scrap for July is expected to settle nearer to Tuesday, July 9, especially since the Fourth of July holiday falls toward the end of next week, insiders said. The consensus as of report writing is for a soft-sideways to $10-$20/gt ($10-$20/mt) less versus June settle for July across all grades except potentially primes, rebar contacts said.
“We’ve seen this before, where nobody really knows where the price bottom will be,” he added. “I don’t see scrap settling any sooner than the second Tuesday of next week (July 9), and usually that’s when the mills (will start to) put out discounts or declare price reductions.”
US East Coast rebar pricing is discussed in a wide $35-$42/cwt. ($772-$926/mt or $700-$840/nt) FOB mill range, depending on the size of the transaction, market insiders said. “It’s been really quiet, not that some people aren’t getting lower prices,” remarked one East Coast rebar market insider. “On the big orders, some folks are getting $35-$36/cwt. ($771-$794/mt or $700-$720/nt), while for a couple of loads, the others are paying $38-$39/cwt. ($838-$860/mt or $760-$780/nt).”
“We’re not seeing much movement in the domestic rebar market because import rebar pricing is basically the same price since mid-May. Import prices have to fall for anything much to happen now,” another rebar market insider added. “The spread between imports and domestic prices is too narrow, so no ones’ willing to take the risk of imports based on a $15-$20/nt ($15-$20/mt) difference in price.”
In the domestic wire rod market, pricing remains flat to week-ago levels, with limited new trades discussed at $39/cwt., ($860/mt or $780/nt) delivered to customer, market insiders told SteelOrbis.