US import rebar and wire rod pricing was flat to higher this week on the heels of supply reductions at Liberty Steel’s 700,000-ton steel making facility in Peoria, Illinois. The plant, one of the largest in the US, could reportedly shut down for as of yet, unknown reasons at the end of October, market insiders told SteelOrbis this week.
The reported loss of nearly 350,000 tons per year of dedicated wire rod capacity is causing domestic wire rod suppliers to raise prices, making imported products more price competitive, market contacts told SteelOrbis.
In the imported wire rod markets, pricing is higher partly as a result of recent higher long steel pricing in Asia, and also because of increased domestic demand given reduced US supply, insiders said. Imported supply could also be more competitive with domestic supply, they said, since Nucor on October 16 raised wire rod pricing at facilities in the Southeast and Northeast by $1.00/cwt., or $20/nt ($22/mt).
“(Liberty) announced a stop in production starting at the end of October, with the last of the wire rod to be distributed at the end of the month,” said one long steel market insider. “We have heard that domestic mills want as much as $40/cwt., or even $41/cwt. for wire rod now. If we get an increase in scrap, then this higher price makes sense.”
Imported wire rod mesh on a DDP loaded truck basis US Gulf Coast is reported at $37.00/cwt. ($740/nt or $816/mt), up from $35.75/cwt. ($715/nt or $788/mt) seven days ago.
On the import rebar front, prices were reported flat to this past week with supplies to the US Gulf Coast on a loaded truck basis discussed at $36.75-$37.50 cwt. ($735-750/nt or $810-827/mt), though still up from $36.50-37.50/cwt. ($730-750/nt or $805-827/mt) on October 7. Trading remains light for US East Coast import rebar with ranges also noted flat at $36.75-$37.25/cwt., though up from $36.00-$36.75/cwt. ($720-735/nt or $794-810/mt) two weeks earlier.
Import rebar prices from Egypt and Algeria were also heard flat with contacts offering supply last at $37.00-38.00/cwt, ($740-760/nt or $816-838/mt) versus earlier trades two weeks earlier at $35.50-$37.00/cwt., ($710-740/nt or $783-816/mt). Import rebar from Turkey is talked flat at 36.75/cwt. ($735/nt or $810/mt) though still up from $36.00/cwt. ($720/nt or $794/mt) two weeks ago.
Delivered rebar from Mexico vicinity Houston, Texas, is discussed flat at $36.00-37.00/cwt. ($720-740/nt or $794-816/mt), compared with $36.25-36.75/cwt. ($725-735/nt or $799-810/mt) seven days earlier.
Geopolitical considerations also are a factor in recent low demand for finished steel products such as domestic rebar and wire rod.
“People are skeptical, and the markets are uncertain waiting on the upcoming US presidential election,” said one Texas-based long steel market insider. “As a result, demand for rebar and other long steel products has improved little from last month.”
In the US domestic market, wire rod pricing rose to $39.00-$41.00/cwt. ($780-820/nt or $860-904/mt), or an average of $40.00/cwt. ($800/nt or $882/mt), up from an average $36.50/cwt ($725/nt or $805/mt) seven days ago.
At last report, November scrap is seen strong sideways in most regions to as much as $30/gt ($30.48/mt) higher in the Chicago and Detroit vicinity, scrap market insiders told SteelOrbis this week. Scrap prices are expected to strengthen in November because steel mills will have a reduced number of their facilities idled due to the completion of planned maintenance outages next month versus October, market insiders said.