US import rebar and wire rod prices were largely steady in limited trade this week as market insiders look to the August scrap market in the US for price stability. A combination of low finished steel demand, they say, with limited new construction-related spending, continues to limit the likelihood of price gains for imports. The result is that domestic mills continue to garner most of the limited new trade, import market insiders told SteelOrbis this week.
During the week of July 22, market contacts said import prices were flat to marginally lower, with many claiming prices had “bottomed” amid higher scrap expectations for August. At last report, August Midwest scrap is discussed sideways to $20/gt ($22/mt) higher across all grades over July settles. On the US East Coast, August scrap is talked strong sideways to July, with potential for higher prices most likely for cuts and shredded grades depending on how much scrap is directed at export markets.
In the import rebar markets, US East Coast loaded truck basis rebar remains steady at $37.00/cwt. ($816/mt or $740/nt), while US Gulf Coast loaded truck rebar was also unchanged at $36.50/cwt. ($805/mt or $730/nt), market insiders said.
While higher August scrap prices could keep import rebar and wire rod prices from falling further, few expect prices to rise much as 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.
“Wire rod prices are staying soft,” said one Midwest rebar insider. “Companies are lowering their prices to get more business, but there is little if any new business to be had.” He continued. “Basically, there’s very little rebar and wire rod imports coming in from places such as Brazil, Europe and Korea, because low-carbon grades of steel are not competitive because US prices have fallen.”
Imports from Egypt are discussed steady, though trading remains sluggish at $37.00/cwt. ($816/mt or $740/nt), delivered US port, while Bulgarian and Algerian exports to US ports were steady 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 once again at $36.50-$38.00/cwt. ($805-838/mt or $730-$760/nt), while wire rod mesh CFR FO USG was also steady following last week’s decline to $39.00/cwt. ($860/mt or $780/nt).
Imported rebar from Mexico on a loaded truck Houston basis is last discussed flat at $37.35/cwt. ($823/mt or $747/nt), market insiders said, while North African rebar from Algeria on a delivered truck basis was unchanged for a sixth week at $36.50/cwt. ($805/mt or $730/nt), market insiders said. Bulgarian supplies on a delivered truck basis are flat at $36/cwt. ($794/mt or $720/nt), they said.
August scrap could potentially rise versus July settled levels, as inventories at dealers on the US East Coast and Midwest are reportedly down between 20-50 percent on a combination of low inflows due to reduced Tier 1 and Tier 2 manufacturing activity in the first half of 2024, and low inputs from peddlers, given recent low prices and continued heat waves across the Midwest and Northeast, scrap dealers told SteelOrbis.
“If higher August scrap keeps rebar and wire rod prices stable, that’s a major achievement given current demand levels,” the rebar insider said.