US domestic rebar and wire rod markets were stable this week on continued low demand, even as potentially lower September scrap pricing continues to limit new spot transactions, market insiders told SteelOrbis this week.
Insiders say new spot market trading remains limited because locking in purchases now could be risky, especially if September scrap prices settle down from August levels.
“I did hear the prospect for lower scrap (pricing) in September, so that is limiting new spot transactions,” said one US East Coast rebar dealer. “As an a result, pricing is little changed from last week as very few new tons are getting moved.”
US domestic rebar pricing is unchanged from the week of August 19 at $35.00-$38.00/cwt., ($700-760/nt or $772-838/mt) on a delivered to customer basis, with the low end of the trading range representing heavily discounted mill pricing for those buyers able to bring more sizable transactions to the trading table. Pricing was talked as low as $30/cwt., ($600/nt or $661/mt), though no trades near that level were able to be confirmed.
“People are only buying what they need,” the East Coast rebar dealer added. “Nobody’s buying on a speculative basis right now, so the markets remain flat. We’ve basically been bouncing around on the bottom of the rebar market again this week.”
Long steel market insiders continue to say tell SteelOrbis that mills are not pushing prices up for finished goods, with most still willing to negotiate discounts with customers, especially with those with large orders in hand. Strong domestic mill discounting was also said to be affecting the price of import rebar, which was discussed $1.25/cwt. ower at $35.25/cwt., ($705/nt or $777/mt).
”Loaded truck basis import rebar vicinity Houston is talked at $35.25/cwt,” said one US Gulf Coast import rebar dealer. “The Houston market is softening up for overseas loaded truck material on domestic mill discounting and continued flat demand.”
In the domestic wire rod market, pricing is discussed on a delivered to customer basis at $37.50-$38.00/cwt., ($750-760/nt or $827-838/mt), unchanged from last week, even as trading remained limited.
Rebar dealers said the week of August 19 that September’s expected rate cut from the Federal Reserve could help long steel demand by jump starting construction-related activity, though there is a more noticeable level of skepticism to that claim this week.
“Based on what I’m paying for the money I’ve borrowed, a half-point rate decline (from the Fed) just isn’t going to cut it” said another rebar insider, expecting current depressed pricing for finished steel to last through the second quarter of 2025. “Nobody really has much disposable income right now, and a rate cut is unlikely to do much to help the markets right away.”
The Federal Reserve is expected to announce a quarter to half point rate cut at its next scheduled meeting September 17-18, with at least one or two more cuts expected before year end.