In the imported rebar markets, prices rose about $1/cwt., or $20/nt ($22/mt) as importers said tariffs are likely to strain the available supply near term. Pricing for import rebar on a loaded truck basis at the US Gulf and US East Coast rose to $36.75-37.75/cwt. ($735-755/nt or $810-832/mt), following last week's $15/nt ($17/mt) increase to $35.75-36.75/cwt. ($715-735/nt or $788-810/mt). Market insiders said new Section 232 tariffs which go into effect March 12 could make long steel imports from countries like Bulgaria and Ukraine non-competitive as unlike under the Biden administration, no exemptions from tariffs are to be expected under the Trump administration.
As market participants continued to wait to see whether tariffs went into effect, offers from Egypt rose on a delivered-to-customer basis to $37.00-38.00/cwt., ($740-760/nt or $816-838/mt), up from a prior weekly average $36.50/cwt. ($730/nt or $805/mt). No new offers were heard on May transits of import rebar from Vietnam, which was priced flat a week earlier at at $34.50/cwt. ($690/nt or $761/mt).
Following the start of tariffs, Mexican markets remain quiet with import rebar on a loaded truck basis vicinity Houston, Texas, last priced at $37.50-$39.50/cwt. ($750-790/nt or $827-871/mt).
On the import wire rod mesh front, import material on a DDP loaded truck basis USG was assessed steady following last week's $0.50/cwt. ($10/t or $11/mt) gain to $37.50/cwt. ($750/nt or $827/mt). Traders said import wire rod pricing is likely to remain steady as commercial output from Liberty Steel's wire rod plant in Peoria, III. likely won't be available until at least the end of April.
"The domestic wire rod mills are pretty busy, but at this point there is no major uptick in pricing," one market insider told SteelOrbis. "Liberty Steel has announced that they have secured financing and will reopen by the middle of (March). However, most, if not all, of their production will go to their downstream facilities, and they will enter the domestic market possibly by the end of April."
US domestic rebar and wire rod prices continue up as tariffs on Canada, Mexico and China take effect
Wednesday, 05 March 2025 23:19:51 (GMT+3) | San Diego
US domestic rebar and wire rod pricing advanced this week in limited trade ahead of the March 4 implementation of 25 percent import tariffs on Mexico and Canada. US President Trump also doubled down on China tariffs, increasing their rate from a previously-announced 10 percent to 20 percent.
Market insiders said the new tariffs are likely to cause steel prices to rise substantially, though potentially, not right away. "While we haven't yet seen a price increase from the mills, we can expect to see further price increases once renewed Section 232 tariffs on steel and aluminum go into place on March 12," one Gulf Coast long steel market insider told SteelOrbis. "After these later tariffs go into play, these so-called 'stacked tariffs' could see tariff rates on Mexico and Canada increase to 50 percent."
The long steel market insider said that while most supply requirements in the near term are likely to be met with domestic supply, he added that buyers requiring specific grades of steel from abroad may have to pay the expected higher tariff-inspired prices once tariffs for steel and aluminum come into play.
In the weekly rebar spot markets, domestic supply on an FOB mill basis is assessed with most transactions noted at $40.00-41.50/cwt. ($800-830/nt or $882-915/mt), on average $40.75/cwt. ($815/nt or $898/mt), up $1.00/cwt. ($20/nt or $22/mt) from seven days ago.
In the domestic wire rod market, most transactions were reported this week at $43.00-44.00/cwt. ($860-880/nt or $948-970/mt), or an average of $43.50/cwt. ($870/nt or $959/mt) delivered to customer, up $1.00/cwt. ($20/nt or $22/mt) from seven days ago.
In the domestic wire rod market, most transactions were reported this week at $43.00-44.00/cwt. ($860-880/nt or $948-970/mt), or an average of $43.50/cwt. ($870/nt or $959/mt) delivered to customer, up $1.00/cwt. ($20/nt or $22/mt) from seven days ago.
On the supply side, Liberty Steel announced they have secured financing and will re-open by the middle of March. However, according to a wire rod market insider, "most, if not all, of their production will go to their downstream facilities at first, with sales to the domestic market possible by the end of April."
In his March 4 address to the US Congress, President Trump said reciprocal tariffs on all products will follow on April 2.
"We can expect a big price increase coming up which will jolt the market," one market insider told SteelOrbis.
Another insider offered his take on the immediate effects of tariffs on the steel market.
"Maybe Trump will be able to re-negotiate these existing tariffs, however, for the time being, Mexico and Canada are in effect out of the market for future steel market deliveries."
March US scrap expectations slip from earlier highs after Trump delays Canada-Mexico tariffs
Friday, 07 March 2025 17:29:58 (GMT+3) | San Diego
March ferrous scrap pricing expectations in the US Midwest and Northeast fell sharply late this week from earlier highs, following reports that US President Trump has delayed implementation of his tariff policy on Mexico and Canada until April 2, market insiders told SteelOrbis.
US Ohio Valley market calls at an average of $45/gt ($46/mt) higher are now called $20-$30/gt ($20-$30/mt) up from where the February market settled.
"Following the news on Trump's delay of tariffs on Canada and Mexico, the mills are taking full advantage of this and lowering their offers for March scrap," one Midwest scrap supplier told SteelOrbis at press time, adding, "Pricing is still up, but not to the extent that we saw earlier in the week."
While March scrap had yet to settle, the Midwest supplier said the extent of price declines for March scrap off recent highs will depend on how much scrap is currently available and where mill demand is projected for the current month.
"Right now, the mills are looking like they'll be offering sideways to up $20-30/gt. However, it will really depend on how much supply is currently out there and how substantial (mill) demand is going to be," he said.
Based on a revised $25/gt ($25/mt) premium to February scrap settled prices, Ohio Valley HMS 1 could settle near $400-420/gt ($406-427/mt) delivered to customer, while shredded scrap could settle near $455-460/gt ($462-467/mt) on delivered basis. P&S is likely to settle near $446-456/gt ($453-463/mt) delivered to customer, while prime busheling scrap could settle at around $480-505/gt ($488-513/mt) delivered to customer.
On the US East Coast, based on a most-quoted and revised plus $10/gt ($10/mt) expectation against the February settlement, domestic HMS could settle at $365-380/gt ($371-386/mt) delivered to customer, while shredded could settle at $395-405/gt ($401-411/mt) for domestic delivery. Domestic P&S could settle on a delivered to customer basis at $365-375/gt ($371-381/mt), while prime busheling scrap could settle at $420-440/gt ($427-447mt) on a delivered to customer basis.
On March 4, tariffs of 25 percent went into effect for the US' two major North American trading partners Mexico and Canada. Tariffs on China were also doubled by Trump from 10 percent to 20 percent. On March 12, new Section 232 tariffs of 25 percent are still proposed for all remaining US trading partners, with no previously included country exemptions and tariff carve-outs available this go-round, Trump said in a recent press conference.
Some insiders are beginning to hear early chatter about the month of April, which is seen sideways to potentially lower this go-round
"I think people are kind of nervous about the scrap situation," said one Midwest scrap supplier, adding, "The talk out there is that people are going to be selling long during March, which means they will be selling more tons than they realistically are going to have on hand, with the hope of buying it back at lower prices later."
The insider added that many suppliers would prefer a more gradual rise or decline in scrap prices versus the large spikes recently seen by some, as scrap supplies remain limited owing to a continuation of cold weather and snow across much of the eastern two-thirds of the US.
"I don't think anybody really wants to see scrap prices balloon up and then crash later," the insider said. "Most scrap dealers would rather see a more gradual pricing response," he noted.
On the finished steel side, this week steelmaker Nucor increased its Consumer Spot Price (CSP) for hot rolled coils by another $40/nt ($44/mt) to $900/nt ($992/mt) FOB mill. Since the beginning of 2025, Nucor's CSP has increased 20 percent, mostly on the back of rising scrap prices, steel market insiders told SteelOrbis.
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