US import rebar and wire rod prices were steady this week, even as exporters are reported to be reducing prices in reaction to aggressive domestic mill price discounting programs amid a growing call for sideways to lower September scrap pricing, market insiders told SteelOrbis this week. New transactions remain limited, they say, as domestic mill discounting continues to limit the room for imports to secure sparse market share against US domestic long steel production.
Import market insiders say that ongoing losses on inventories currently on the ground continue to reduce demand for longer-term contracts, especially those that will arrive in the later months of the year.
“We’ve seen a decline this week in rebar pricing because of lower priced imports,” said one Gulf Coast rebar dealer. “The lowest pricing we’re seeing (for import rebar) is from Bulgarian dealers at $35.00-$36.00/cwt., who are basing their pricing off of Ukrainian billets.”
Houston import rebar is assessed at $35.25/cwt. ($710/nt or $783/mt) loaded truck basis, steady from the week of August 26. Mexican rebar vicinity Houston on a loaded truck basis, was also unchanged at $36.25-$37.50/cwt. ($725-750/nt or $799-827/mt). Market insiders said Mexican rebar remains non-competitive with domestic supplies as concerns over antidumping from Mexico limit price discounting actions from Mexican mills.
“Mexican rebar supply remains about $2.00/cwt. out of the market right now, because as they approach the price of domestic supply, concerns about antidumping become heightened,” a Gulf Coast rebar trader said.
US Gulf Coast loaded truck basis rebar is assessed steady on the week at $35.25/cwt. ($705/nt or $777/mt) delivered, following earlier declines from $36.50/cwt ($730/nt or $805/mt) reported during the week of August 19. Imported supply from Egypt is assessed steady at $35.50/cwt. ($710/nt or $783/mt) on a delivered basis, while delivered Algerian rebar is discussed at $35.00-$35.50/cwt. ($700-$710/nt or $772-783/mt).
“We’re not seeing many substantial (rebar) orders as Algeria and Egypt are struggling to find customers even at $35.00-35.50/cwt. ($700-710/nt or $772-783/mt),” said one import rebar market insider. “Domestic mills are so competitive on pricing that importers have been forced to cut their prices to find any market share at all.”
In the import wire rod market, prices were steady on the week at $35.50-$37.00/cwt. ($710/nt -$$740/nt or $783-816/mt).
Import pricing on the US West Coast is expected to remain under pressure in the near term as new flows of Malaysian rebar and wire rod enter the market, market insiders told SteelOrbis. Traders caution though, that domestic markets for Malaysian rebar remain limited as most supply is based on 40-60-foot lengths, instead of the usual 20-foot lengths preferred by US distributors. More sales are expected to be generated by a “narrower client base” of domestic fabricators, they said