US domestic rebar and wire rod prices flat to lower as supply builds with low demand and lower priced May scrap
Thursday, 08 May 2025 19:58:17 (GMT+3) San Diego
US domestic rebar and wire rod prices were stable to down slightly this week as supply remains abundant while spot market demand remains unremarkable, market insiders told SteelOrbis this week. Lower domestic scrap pricing for May combined with the continued ramp up of crucial wire rod production by Liberty Steel also is expected to pressure prices lower in the near term, they said.
In the weekly rebar spot markets, domestic supply on an FOB mill basis is assessed with most transactions noted at $37.50-39.00/cwt. ($750-780/nt or $827-860/mt), on average $38.25/cwt. ($765/nt or $843/mt), unchanged from seven days ago. "Domestic rebar is trending down in anticipation of lower scrap," said a SteelOrbis rebar insider. "More stormy weather in Texas has not helped the spot market either," he added
"The Texas market is flooded with rebar," said another rebar market insider. "We're seeing real heavy stock levels at the ports because of solid imports coming in."
"There's definitely an oversupply situation going on in Texas," said yet another rebar market insider. "We're hearing pricing below $36.00/cwt. ($720/nt or $794/mt) on some discounted rebar sales for stock that's already on the ground in Texas. Vietnam and Algeria have been pretty aggressive moving in imports."
The insider added that he expects that domestic prices could decline further once monthly scrap pricing settles are announced by major steel trade data providers such as SteelOrbis.
"I think that once the scrap settles come out for May, we could see further declines in long steel," he added.
While no monthly scrap settle numbers are yet available as May negotiations continue, based on the latest down $20/gt average weekly market call for May, US Midwest busheling scrap could settle near $445-470/gt ($452-478/mt), or on average $466/gt ($473/mt), off from its April $465-490/gt ($472-498/mt) settlement. May shredded scrap, which settled $40/gt less during April supply negotiations to $415-420/gt ($422-427/mt) is seen another $40/gt ($41/mt) less for May at $375-380/nt ($381-386/mt). May HMS 1, which settled $30/gt less for April at $365-385/gt ($371-391/mt), is seen another $30/gt lower at $335-355/nt ($340-361/mt). P&S scrap, which settled $40/gt lower for April at $401-411/gt ($407-418/mt) is seen $30/gt less at $371-381/nt ($377-387/mt), market insiders said.
In the domestic wire rod markets, prices headed a bit lower for the first time in three weeks with most transactions reported this week at $45.00-46.00/cwt ($900-920/nt or $992-1,014/mt), or an average of $45.50/cwt ($910/nt or $1,003/mt), down $0.50/cwt ($10/nt or $11/mt) from seven days ago. Insiders said wire rod pricing has begun to dip as Peoria, Illinois-based Liberty Steel continues their start-up procedures. Most contacts expect wire rod pricing to continue under pressure as Liberty begins to ramp up its daily wire rod production toward its combined 700,000 ton per year wire and wire rod capacity.
"The trend is now down for domestic wire rod because of lower May scrap and continued low domestic demand," the insider added. "Even overseas, the market is not good."
US import rebar and wire rod pricing continues down amid low demand, lower May scrap, cash flow issues
Friday, 09 May 2025 00:36:23 (GMT+3) San Diego
US import rebar and wire rod pricing continued lower this week amid low domestic demand and an expectation for lower scrap prices for May, market insiders told SteelOrbis. Insiders added that an increase in the volume of US finished steel imports into US ports is also continuing to pressure prices, as international suppliers attempt to maintain cash flow at a time when global steel demand remains unremarkable.
"There's a bit of a bloodbath going on for rebar," said one long steel insider reacting to the reported buildup of rebar supply at Texas ports. "We're hearing prices of below $36.00/cwt. ($720/nt or $794/mt) being offered for material that's already on the ground."
Despite current 25 percent import tariffs, the insider said that exporters from Vietnam and Algeria were being "particularly aggressive. "Sellers need to maintain cash flows, and since we've seen the bottom of the market, price levels are not going to move that much," he said.
"Nobody's really in a hurry to get new rebar deals done, considering current demand and the outlook for lower scrap," the insider added. "The number of people interested in new deals is just not there to maintain existing price levels."
For a second week, imported rebar on a loaded truck basis at the US Gulf Coast and US East Coast declined another $0.50/cwt. to $35.50-37.50/cwt. ($720-760/nt or $794-838/mt), off from $36.00-38.00/cwt. ($720-760/nt or $794-838/mt), or on average $37.00/cwt., one week earlier. May import shipments from Egypt, Algeria and Vietnam for late-June-late-July delivery into the US Gulf Coast are discussed lower at $35.50-36.50/cwt. ($710-7830/nt or $783-805/mt), off from $36.00-37.00/cwt. ($720-740/nt or $794-816/mt) one week ago.
In the Mexican long steel export market, trading remains quiet and flat as 25 percent tariffs continue to limit available trade opportunities, import insiders said. Import rebar on a loaded truck basis vicinity Houston, Texas, from available US stock is reported flat at $36.75-38.75/cwt. ($735-775/nt or $810-854/mt), versus earlier trades three weeks earlier at $37.00-39.00/cwt. ($740-780/nt or $816-860/mt), market insiders told SteelOrbis.
Insiders predict that as Section 232 steel tariffs of 25 percent are now in effect, import shipments on rebar from North Africa, Malaysia, and Vietnam are likely to rise as buyers adjust existing supply chains to make up the supply shortfall from previous sales originating out of Bulgaria and the Ukraine. Those steel exporting nations were previously exempt from import tariffs.
In other import rebar markets, pricing for import rebar on a CFR, free-out basis at the US Gulf Coast was discussed on average down $10/nt at $605-625/nt ($667-689/mt), off from pricing that was reported flat this past week at $615-635/nt ($678-700/mt) one week earlier.
The price of imported wire rod mesh on a DDP loaded truck basis dipped another $0.50/nt this week with sales noted at $36.50-37.50/cwt. ($730-750/nt or $805-827/mt), off from $37.00-38.00/cwt. ($740-760/nt or $794-816/mt) a week ago.
On the US scrap side, plentiful supply and limited expected May buying from domestic mills has caused US Midwest scrap grades to decline by $20-40/gt ($20-41/mt) from their April counterparts, with shredded grades leading the monthly decline at $40/gt discounts, insiders said. On the US East Coast, reduced export demand from Europe and Turkey has caused scrap pricing to dip for as second month, with shredded and cut grades seen $40/gt ($41/mt) lower, while prime busheling is seen $30/gt ($30/mt) less than April settled values.
May US scrap prices seen down $20-40/gt as US scrap demand limps amid plentiful supply
Thursday, 08 May 2025 23:14:00 (GMT+3) San Diego
US scrap prices for May delivery are expected to settle $20-40/gt ($20-41/mt) less than their April counterparts as a result of continued reports of plentiful inventory levels at local scrap yards, amid an expectation for reduced May demand from domestic steel producers, market insiders told SteelOrbis.
Market insiders claim May scrap contract negotiations could yield a "no-buy, limited buy, or reduced buy scenario" from many domestic mills during the ongoing monthly buy cycle.
"Lots of furnaces have been idled, and some mills are out of the scrap market for May, commented one Midwest scrap insider reflecting on the lower price levels and limited demand expectations for May.
As it still remains fairly early in monthly supply negotiations, May price expectations remained fluid at press time.
"Not much is really going on this month for May scrap because of low demand," said another scrap insider. "We are hearing that one mill is looking at down $50/gt for May (shredded) scrap, but that's just talk right now."
"High levels of supply are still driving lower May price expectations," commented one Midwest mill scrap buyer. "We're also seeing very poor export opportunities for East Coast scrap."
In the US Midwest, May busheling scrap in the Ohio Valley is seen $20/gt less at $445-470/gt ($452-478/mt), while May shredded scrap could settle $40/gt ($41/mt) lower at $375-$380/gt ($381-386/mt). May HMS and P&S cut grades are seen on average $30/gt ($30/mt) less at $335-355/gt ($340-361/mt), and $371-381/gt ($377-387/mt) respectively, scrap insiders said.
On the US East Coast, flagging export demand and continued reports of high inventory levels at local East Coast yards are causing scrap prices to dip for a second month, insiders told SteelOrbis.
May Busheling scrap is seen $30/gt ($30/mt) less at $380-400/gt ($386-406/mt), while shredded scrap is seen $40/gt ($41/mt) less at $325-335/gt ($330-340/mt). Cut grades HMS and P&S scrap for May delivery are called $40/gt ($41/mt) lower at $305-320/gt ($310-325/mt), and $295-305/gt ($300-310/mt), respectively.
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