US import rebar and wire rod prices down amid reports of steady imports, limited domestic demand and falling June scrap values
Thursday, 29 May 2025 21:05:15 (GMT+3) San Diego
US import rebar and wire rod prices fell this week, following fairly steady pricing recently. This was due to reports of increased imports of finished long steel, high existing inventory on the US Gulf Coast, and signs of continued weakness in June scrap prices, although less so than earlier in the week, according to long steel insiders who spoke to SteelOrbis.
"A more consistent lower June scrap outlook is starting to exert a little downward pressure on long steel pricing," said one import rebar insider. 'Rebar has been quiet as domestic demand has remained minimal, so customers are starting to get a bit jittery. He added: "We're seeing lots of importers bringing in shipments, and as a result, the US supply situation with regard to wire rod is starting to correct itself."
The insider said that output from the recently restored Liberty wire and rod steel plant is increasing, with further increases possible over the coming weeks.
"We're seeing increased supply availability, the insider said.
On the US Gulf Coast, import rebar on a loaded truck basis in the Houston area is priced at around $0.50/nt ($11/mt), which is approximately $10/nt ($11/mt) lower than last week, at $35.00-36.00/cwt. ($35.50/cwt on average), down from $35.00-37.00/cwt ($36.00/cwt on average), or $720/nt ($794/mt) one week earlier. Insiders said that sales from Egypt. Algeria and Vietnam for late June-early July delivery continue to dominate the export market to the US Gulf Coast, where supplies remain high.
In the Mexican rebar markets, insiders reported minimal sales in the US from existing inventory on a loaded truck basis in Houston, Texas, at $36.00-38.00/cwt. ($720-760/nt or $794-838/mt). This is about $0.75/cwt. less than last week. However, insiders said that further sales at these prices could be scarce, as further declines in domestic rebar values could make future trades at these prices uncompetitive.
According to insiders, exports of rebar and wire rod from Canada and Mexico to the US remain limited while the 25 percent steel tariff remains in place, pending global trade and tariff discussions with the Trump administration in the US.
"There's a lot of protectionism going on right now with the tariffs," he said. "The Canadians who were active in the mid-month wire rod markets have been really quiet because they're basically locked out of the low-carbon market with their prices at $46.00-47.00/cwt, while US prices are at $44.50-45.50/cwt."
Insiders told SteelOrbis that the 1.63 million tons of new annual rebar capacity added at three new mini-mills, which are expected to be operational by the third quarter in the US, was built to address the anticipated growth in infrastructure development projects for new and existing bridges, roads, and tunnels, as part of the Infrastructure Investment and Jobs Act.
"The recent start-up of the 700,000-ton-per-year Hybar rebar mill in Arkansas is expected to put downward pressure on rebar prices, another rebar insider recently told SteelOrbis. "And while rebar prices could fall as more capacity comes online, scrap prices could rise."
In the US scrap market in June, prices which were heard earlier this week at discounts of $30-40/gt have begun to moderate, according to insiders, with the latest expectation for June now being a soft sideways movement of $10-20/gt less than in May. "Shred and primes could lead the decline at $30-40/gt discounts, one scrap dealer told SteelOrbis earlier this week. "I still think we're looking at soft sideways for June, with Midwest busheling likely to perform the best," said another scrap dealer as this report went to press.
US domestic rebar and wire rod prices remain flat in quiet market
Thursday, 29 May 2025 20:51:49 (GMT+3) San Diego
US domestic rebar and wire rod prices remained unchanged this week due to minimal domestic long steel demand and high supply availability, market insiders told SteelOrbis.
"Domestic pricing is soft and the trend is looking downward," said one insider. "As supplies remain high, we're not seeing much change in the domestic rebar markets this week."
"World rebar prices haven't changed much over the past year and a half, the insider said. "However, the US markets have been more volatile, with scrap prices down over the last several months," he added. "US prices are down a bit, but not by a whole lot."
In the weekly rebar spot markets, the domestic supply is assessed on an FOB mill basis, with most transactions noted as unchanged from seven days earlier at an average of $38.00/cwt. ($760/nt or $838/mt).
In the domestic wire rod market, most transactions were reported at $44.50-45.50/cwt. ($890-910/nt or $981-1,003/mt) this week which is unchanged from one week prior. According to media reports, Liberty Steel has continued to ramp up production as normal this week.
"Since demand is so low, the domestic rebar and wire markets are more vulnerable to further price declines," the long steel insider told SteelOrbis.
June US scrap pricing seen sideways to 10-20/gt less amid reports of low finished steel demand and continued high scrap stocks
Thursday, 29 May 2025 18:46:47 (GMT+3) San Diego
This week, the market expectation for US scrap is sideways to $10-20/gt less, as insiders report minimal new demand for finished steel even though scrap inventories remain solid. This week's market outlook differs from that reported seven days earlier, when expectations for June were more mixed.
"So far in Texas, we are hearing that expectations for June are unchanged," remarked one Texas-based scrap dealer. According to scrap insiders, scrap and rebar supply remains high in Texas due to limited recent demand from mills and improved flows into yards as a result of higher prices paid to scrap sub-collectors.
The current sideways-to-lower forecast for next month comes amid expectations of increased demand for scrap starting in June, when more than 1.6 million tons of annual rebar production capacity will come online with the opening of three new rebar fabrication mills in the southern US. The Commercial Metals Company's (CMC) 500,000-ton-per-year mill in Martinsburg, West Virginia; Nucor's 430,000-ton-per-year micro mill in Lexington, North Carolina; and Hybar LLC's 700,000-ton-per-year mill in Osceola, Arkansas are all expected to begin melting scrap in June.
"Yes, we have heard that June scrap could be down by as much as $20/gt," said another Midwest scrap insider. "The new Hybar mill will produce salable rebar from billets in May and will start melting scrap in June."
Based on a sideways to $20/gt lower June scrap call, US Midwest prime busheling scrap, which fell by $30/gt in May, could settle at $415-440/gt ($422-447/mt), while shredded scrap, which fell by $40/gt in May, could settle at $355-360/gt ($361-366/mt). Ohio Valley P&S and HMS grades, which saw $40/gt price drops in May, could settle at $341-351/gt ($346-357/mt) and $305-325/gt ($310-330/mt) respectively. In the US Northeast, prime busheling, which settled at $30/gt less in May, could settle at $360-380/gt ($366-386/mt), while shredded scrap, which lost $40/gt during May's negotiations, could settle at $305-315/gt ($310-320/mt). P&S and HMS grades, which saw declines of $40/gt in May, could settle at $275-285/gt ($279-290/mt) and $285-300/gt ($290-305/mt), respectively, according to scrap insiders.
According to SteelOrbis scrap data, since the peak of monthly domestic scrap prices in March, ahead of the much-anticipated tariff announcements from the Trump administration in the US, the average price of Midwest Ohio Valley shredded scrap has slumped by more than 24 percent, from an average of $506/gt ($514/mt) to $384/gt ($390/mt). SteelOrbis data shows that HMS pricing in the US Northeast dropped by a more modest 22.8 percent during the same period, reaching an average of $313/gt ($318/mt).
