US import rebar and wire rod prices were steady to lower this week in slow trade, as many market participants focused on settling August scrap markets that unexpectedly flip-flopped from sideways-to-higher to sideways as mills emerged at the start of the August scrap buy cycle, market insiders told SteelOrbis this week.
Economic issues, they said, like recent stock market declines, the lack of an interest rate cut, and a bad US jobs report combined with continued low demand to overshadow recent expectations for higher August scrap. As mills emerged to buy, they said, many sellers focused instead on ongoing cash flow issues, instead of reports of dwindling inventories, following what many said was a a “dismal July” for scrap suppliers.
Add to this, recent reports that September scrap could be lower barring the release of more optimistic economic news, and sideways scrap for August seems the best the market could muster, they said.
“Supply is tight, but demand remains low, so that’s what’s holding this scrap market together at sideways,” one scrap market insider told SteelOrbis this week. “It will mostly all get done at sideways this month,” another scrap market trader said on August 8 as the market prepared to settle.
Similar to the week of July 29, insiders said a combination of low finished steel demand, with limited new construction-related spending as interest rates remain at record levels, continues to limit the likelihood of price gains for import rebar. The result is that domestic mills continue to make most of the limited new sales, import market insiders told SteelOrbis this week.
Market insiders added that mills continue to discount pricing to maintain market share. “I don’t think that it is imports causing prices to fall, as much as infighting between mills chasing tonnage,” they said.
In the import rebar markets, US East Coast loaded truck basis rebar declined $0.50/cwt. ($10/nt or $11/mt) to $36.50/cwt. ($805/mt or $730/nt), matching the price for US Gulf Coast loaded truck rebar which was unchanged at $36.50/cwt. ($805/mt or $730/nt), market insiders said.
Long steel market insiders continue to tell SteelOrbis that low domestic prices limit the amount of imports able to be delivered to the US at workable margins for shippers. Rising freight rates, and ongoing tariffs they say, also limit exports to the US at current prices.
“If sellers in Ukraine and elsewhere decide to discount their prices some limited imports could get through, though, at current prices the imports just don’t work,” the import insider said.
Imports from Egypt are discussed steady, though trading remains light at $37.00/cwt. ($816/mt or $740/nt) delivered US port, while Bulgarian and Algerian exports to US ports were unchanged at $36.00/cwt. ($794/mt or $720/nt), and $36.50/cwt. ($805/mt or $730/nt) delivered US port, respectively, market insiders said.
In the imported wire rod markets, wire rod mesh DDP loaded truck USG was quoted flat on the week at $36.50-$38.00/cwt. ($805 to $838/mt or $730-760/nt), while wire rod mesh CFR FO USG remained steady at $39.00/cwt. ($860/mt or $780/nt).