US domestic rebar pricing is seen flat to higher on increased October scrap prices, while wire rod prices moved up on continued reductions to US supply as a key Midwest producer could remain at reduced capacity into November, market insiders told SteelOrbis this week.
In the weekly spot markets, domestic rebar on an FOB mill basis is assessed with most transactions discussed at $36.00-$39.00 cwt. ($720-780/nt or $794-860/mt), although on average $37.50 cwt. ($750/nt or $827/mt), up from last week’s $35.00-$38.00/cwt. ($725-750/nt or $772-838/mt) range.
“I feel there are more chances of a price increase from the domestic producers,” a market insider told SteelOrbis. “Scrap went up, and (long steel) inventories are low because not much is coming from overseas.”
As previously reported by SteelOrbis, October domestic scrap market pricing settled at $20/gt ($22/mt) premiums to September across most Southeast scrap grades. On the US East Coast, October 80:20 HMS#1 scrap is discussed at $350/gt ($355/mt) up from the average of $303/gt ($308/mt) in September.
In the domestic wire rod markets, most transactions have been discussed at $37-$38/cwt. ($740-760/nt or $815-838/mt), or an average of $37.50/cwt. ($750/nt or $827/mt), up from an average $37.00/cwt. ($740/nt or $816/mt) seven days ago.
Insiders said wire rod pricing is stronger this month because of ongoing domestic supply issues at Liberty Steel’s 700,000-ton annual capacity Peoria, Illinois-based wire and rod plant. Sources said this week that the plant could remain at reduced capacity through November, with some expecting the plant to shut entirely. Calls to Liberty to confirm the unit status were not returned prior to press time. Also, on the mill front, as of October 16, Nucor Steel increased its current wire rod pricing by $20/nt ($22/mt), though the steel maker said existing confirmed orders will be price protected if shipped by October 31.