Updates From This Week Will we see more imports coming in for Q1? Chicago shredded scrap settled $10/ton lower than last month for December but this wasn't going to impact the end product pricing negatively in this current state of the market. Demand, and ultimately how much of the domestic order book is filled, are the main factors that determine the domestic pricing right now. Domestic mills have been telling their customers that the outlook is bright and they are getting busier, yet none of the producers are ready to make a big pricing push in December. Some rebar mills promise their customers to keep their prices the same even in January. Nucor even came up with a strange "no change in prices" letter for their rod products this week. While the market was expecting the rod mills to raise their prices along with tightening supply due to halted production at Liberty, Nucor's surprise announcement raised some eyebrows. Perhaps Nucor and other domestic rod producers worry about inviting too many import offers for Q1 by raising prices too fast. However, rod buyers have already made some purchases to hedge their needs. Availability, not pricing, was the main concern in their decision making process. On the rebar side, sentiment is quite different and customers are getting calls from their friendly domestic reps who are offering to match import prices. Clearly the order books are not comfortably full for the rebar mills and the domestic fight to make sales is on. Imports find little foothold in this environment with low domestic prices — not too many large shipments from abroad have been booked for the first quarter. StaalX Celebrates Its 3rd Anniversary This November marked a special milestone for us—3 incredible years since our incorporation. What began as a bold vision has grown into a journey filled with challenges, achievements, and lasting partnerships. As we celebrate this achievement, we’re filled with excitement for the opportunities ahead. Here’s to continuing to build strong connections and delivering excellence in the years to come! StaalX takes the stress out of steel procurement. Competitive pricing, reliable logistics, and nationwide reach—all in one place. Reach out to us today at trading@staalx.com to see how we can help you.
StaalX Sponsors the 2025 Annual Rebar & Wire Rod Conference  StaalX proudly sponsors SteelOrbis' Rebar & Wire Rod conference on Monday, January 20, 2025. This is the only steel-focused event scheduled alongside the World of Concrete — a can’t-miss networking opportunity for concrete reinforcing professionals. Our CEO, Murat Askin, will be moderating and speaking at the event, sharing valuable insights with attendees. Click the image above to learn more about the event and register! We also look forward to meeting you at our N2844 booth at the World of Concrete to learn about your needs and how StaalX can help you source competitively priced products when you need them.  From our content partner, SteelOrbis  US import rebar and wire rod pricing mostly steady on continued tight supply, US mills react | Thursday, 12 December 2024 01:02:45 (GMT+3), San Diego US import rebar and wire rod pricing continued to trade mostly steady this week, even as US domestic supply remains constrained with an ongoing key US wire rod plant closure, which could potentially make more room for imports to penetrate into US markets, insiders told SteelOrbis this week. And, even as supply is reported tight by market insiders, barring an unforeseen demand increase, recent lower priced December shredded scrap settles may limit the likelihood that prices will increase much as the markets move through the holiday-shortened December trading month. Long steel contacts said the ongoing Liberty Steel outage has allowed US suppliers more liberty to raise their prices, even though few mills have yet to actually implement those price increases because of continued competition from competitors, as long steel demand remains little changed week to week. While mill price increases haven't really materialized too much lately, some import insiders say the trend is looking higher. "Supply is getting tight," said one Gulf Coast long steel importer. "People are now making plans as though the Liberty plant may not be coming back," he continued. "On the other hand, December shredded scrap in Chicago is likely to settle at minus $10/gt to November, so that doesn't bode well for rebar prices short term." On the mill side, on December 10, steelmaker Nucor announced that it will maintain its earlier $20/nt ($1.00/cwt.) wire rod price increase, though existing orders will remain price protected if shipped by December 31. Other recent mill price increases from Nucor's competitors may have had some unforeseen consequences, insiders said. "The earlier CMC rebar price increase that failed to stick in the pricing markets actually had a very positive affect, whether intended or not," said one US East Coast rebar dealer. "It stopped the price erosion, so, we are currently bouncing around on the bottom," he continued. "Pricing (domestic) is low enough to keep imports at bay, but high enough for the mills to make a little money. And the mills are now in a position to increase prices when the situation presents itself, such as on reduced imports, a scrap price increase, or just a general business improvement." On the supply side, long steel market insiders reported this week that the anticipated restart of the downed Liberty Steel plant late in Q1 might depend on whether the incoming Trump administration decides to levy additional tariffs on imports of foreign steel. "I can't begin to predict whether the Liberty plant will restart as planned until we see what the Trump administration intends to do," the East Coast rebar insider added. "If imports get restricted further, then, prices could rise and the wire rod mill may re-open," he said. "If the situation remains as it is, it is doubtful in my opinion that the plant will restart." In the weekly import markets, US East Coast import rebar on a loaded truck basis was marginally lower at $36.25-37.25/cwt. ($725-745/nt or $799-821/mt), versus $36.50- 37.50/cwt. ($730-750/nt or $805-827/mt), one week earlier. US Gulf Coast rebar on a loaded truck basis was a bit lower on the week at $35.50-36.50/cwt. ($710-730/nt or $782-805/mt), versus $35.75-36.75/cwt. ($715-735/nt or $788-810/mt) seven days ago, insiders said. Imported wire rod mesh on a DDP loaded truck basis US Gulf is discussed stable following earlier weekly declines to $37.00/cwt. ($740/nt or $827/mt), while import wire rod last traded on average flat on the week at $36.00-38.00/cwt ($720-760/nt or $794-838/mt), versus last week's $36.50-37.50/cwt. ($730-750/nt or $805-827/mt) range. Competition from aggressive domestic suppliers continues to limit new spot price increases on import transactions, insiders said. Despite a continued domestic wire rod shortfall, some importers say domestic long steel supply still remains a more attractive option versus imports due to domestic mill discounting programs, shorter lead times for local delivery, and reduced geopolitical risk. Insiders said they expect domestic wire rod pricing to potentially move higher near term as a result of the Liberty outage, with further price increases from rod mills possible soon. Higher pricing for rebar might have to wait until at least February, they said, ahead of the beginning of the 2025 spring construction season, as demand for rebar is "just not there yet, and Q1 is historically a good time for demand to pop." Import rebar pricing offers from Egypt were reported stable on the week on a delivered to customer basis at $35.75/cwt. ($715/nt or $788/mt), while few offers were heard this week again from Oman, UAE, or Algeria. Insiders said they expect more import penetration in the near term from Malaysia and Vietnam cargoes, where raw material costs are reduced. Delivered rebar from Mexico vicinity Houston, Texas, on a loaded truck basis is discussed flat on the week at $35.75-37.75/cwt. ($715-755/nt or $788-832/mt). "Prices continue to trade stable to earlier December levels," said one rebar importer that deals in Mexico. "In Texas though, we're hearing that one domestic mill is offering $0.25/cwt. ($5/nt) discounts if buyers take material before December 31." Insiders said tax duty on unsold 2025 supply still on the ground as of January 1 could be assessed at 3-5 percent. US domestic rebar prices fell on continued scant spot market demand and lower December shredded scrap pricing, while wire rod prices continued marginally higher this week, as the continued shutdown at Liberty Steel's wire rod plant in Illinois continues to reduce domestic supply availability, market insiders told SteelOrbis this week. In the weekly rebar spot markets, insiders report minimal weekly demand with domestic supply on an FOB mill basis assessed at $35.00-36.00/cwt. ($700-720/nt or $771.62- 793.67/mt), or on average $35.50/cwt. ($710/nt or $782.64/mt). This compared with $37.00- 38.00/cwt. ($740-760/nt or $815.71-837.76/mt) seven days ago. Given continuing low finished steel demand, some market insiders don't expect much recovery in local rebar markets until potentially February, ahead of the 2025 spring construction season. "It's December, it's winter and we're in the two worse months of the year," said one US East Coast rebar dealer, explaining the likely reasoning behind this week's rebar price decline. "The recent CMC rebar price increase that failed to stick in the spot markets had a positive effect on pricing whether intended or not," he added. "It helped stop the price erosion, so now we are bouncing around on the bottom, with prices low enough for the mills to make some money but high enough to keep imports at bay." Recent December shredded scrap pricing in Chicago, a key metric for spot market rebar pricing, is also causing rebar prices to flounder, insiders said. Pricing is reported down $10/gt ($10/mt) from November settle levels at $375-380/gt ($381-386/mt), scrap insiders told SteelOrbis. Insiders said mills sought as much as $20/gt discounts to November for shredded, though suppliers could only accommodate $10/gt discounts because of continued reports of low inventory levels. In the domestic wire rod market, most transactions were reported this week at $39.50- 40.50/cwt. ($790-810/nt or $870.83-892.88/mt), or an average of $40.00/cwt. ($800/nt or $881.85/mt), up from $39.50-40.00/cwt. ($790-800/nt or $870.83-881.85/mt), or an average of $39.75/cwt. (795$/nt or $876/mt) seven days earlier. "The wire rod market is strong because of the uncertainty of supply due to Liberty Steel. There is a lot of skepticism surrounding their return," a SteelOrbis insider remarked. US scrap markets for December settle sideways to down as demand from mills appears limited | Thursday, 12 December 2024 23:21:06 (GMT+3), San Diego
US scrap prices for the month of December settled sideways to down in the Ohio Valley and lower overall across the US Northeast region this week as new scrap demand from mills was reported to be minimal, scrap market insiders told SteelOrbis this week following the completion of the December buy cycle. Although the beginning of December scrap negotiations saw the weekly pricing consensus emerge at sideways to November, once mills began talks for their limited December requirements, lower pricing was quickly in order. Market insiders reported Midwest mills initially sought $10-$20/gt ($10-20/mt) discounts for December, even as suppliers did their best to hold their ground, despite continuing reports of weak mill order books coming into the new month. "Shredders are only going down $5/gt ($5/mt) for the scrap feed, but mills are wanting to buy frag and shred at down $10-$20/gt which means that shredders' margins are shrinking as they can't follow the down $10-20/gt and maintain volumes," said one Midwest scrap insider. "This is an indicator that the market should not be down as much as the mills are trying to take it." Ultimately, the Ohio Valley settled for December sideways to $10/gt ($10/mt) less, SteelOrbis data shows, with HMS 1 settled down $10/gt at $320-340/gt ($325-345/mt) delivered to customer, shredded scrap was off $10/gt to $375-380/gt ($381-386/mt) on a delivered basis, while P&S settled $10/gt lower at $366-$376/gt ($372-382/mt) delivered to customer. Busheling settled sideways to November at $390-415/gt ($396-422/mt) delivered to customer. In the US Northeast, pricing was off across the board, though declines were less severe owing to scrap export opportunity, insiders said. HMS settled down just $2/gt from November settles at $335-350/gt ($340-356/mt) delivered to customer, while shredded saw pricing down $5/gt to $365-375/gt ($371-381/mt) delivered. P&S action was settled $5/gt less at $335- 345/gt ($340-351/mt) on a delivered basis, while busheling scrap was also off $5/gt to $390- 410/gt ($395-417/mt) delivered to customer, market insiders told SteelOrbis. Do you have any questions? Check out our FAQ!Check out the most frequently asked questions about the service and products of StaalX. We are always here to chat with you in the chat boxes from the site or on the support telephone number below. Contact us support@staalx.com or +1 (708) 697-3227 Follow StaalX on |
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