US import rebar and wire rod prices flat to slightly down with low construction demand, scrap
Wednesday, 17 July 2024 22:14:02 (GMT+3) San Diego
US import rebar and wire rod prices were steady to a bit lower this week, following steady to lower Ohio Valley July scrap prices and continued low construction-related demand, market insiders told SteelOrbis this week.
Even as most prices remained flat week on week, insiders continue to say domestic steel mills continue to command the lion's share of new business, given the higher risk of imports, the availability of producer discounts, and a price spread between imports and domestic supply that remains too narrow for traders to choose the import option.
"Margins are tight, though most customers are okay and continue to be busy with the market trending down," said one Mexico- based rebar market insider. "In some areas like Houston, the market was muted because last week's hurricane (Beryl) disrupted supply."
In the import rebar markets, US East Coast loaded truck basis rebar was steady on the week following previous weekly declines at $37.00/cwt, ($816/mt or $740/nt), while US Gulf Coast loaded truck rebar was also steady at $36.50/cwt., ($805/mt or $730/nt), market insiders said.
Imports from Egypt remain unchanged on the week in lethargic trade 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 to $838/mt or $730-$760/nt). Wire rod mesh CFR FOB USG declined $1.00/cwt. or $20/mt to $39.50/cwt. ($871/mt or $790/nt).
Market insiders said last week US domestic rebar pricing could be nearing its bottom, predicting prices would decline another $40/nt ($44/mt) on a delivered to customer basis before the market flattens out. Domestic rebar in the vicinity of Chicago was $0.25/cwt. ($5/mt or $5/nt) less this week at $36.75/cwt. ($810/mt or $735/nt) delivered to customer, following this past week's 1.00/cwt. ($20/mt or $20/nt) decline to $37/cwt. ($816/mt or $740/nt), market insiders said.
Imported rebar from Mexico on a loaded truck Houston basis was slightly higher on the week as the ongoing ArcelorMittal steel plant strike, which was declared a formal strike on June 4, continues to curb available supplies, market insiders said. Mexican rebar is priced at $37.35/cwt ($823/mt or $747/nt) delivered truck Houston, up slightly from last week's quotes at $37/cwt. ($816/mt or $740/nt). Deliveries of Mexican rebar to Chicago on a delivered truck basis, were priced "out of the market" at $38.50/cwt. ($849/mt or $770/nt), market insiders said.
US domestic rebar and wire rod prices continue steady to down as new demand remains low
Wednesday, 17 July 2024 21:30:17 (GMT+3) | San Diego
US domestic rebar and wire rod markets were steady to lower in thin trade this week amid scant new construction-related demand and flat lower July scrap prices, market insiders told SteekOrbis this week.
The market assessment differs little from this past week, when pricing was steady to down as the July scrap market in the US Ohio Valley settled steady to lower and finished steel prices were steady to down.
"It's kind of a (mess) right now, as whatever price you pay today, it seems you're able to get a better one tomorrow," said one SteelOrbis rebar market insider commenting on current price discounting by steel mills eager to move product. "In the US, there's a lot of (construction) work that needs to be released, and when it does, it will really help demand."
US domestic rebar fell an average of $0.25/cwt ($5.51/mt or $5/nt) to $35-38.50/cwt. ($772-849/mt or $700-770/nt), delivered to customer, off from previous assessments at $36-38.00/cwt. ($794-838/mt or $720-760/nt), market insiders told SteelOrbis.
"The Midwest is quiet, and the West is steady," said another Mexico-based rebar market insider. "Some markets like Houston remain muted since the hurricane that hit early last week disrupted the market."
In the domestic wire rod market, prices were flat to last week at $38.50/cwt. ($849/mt or $770/nt) FOB mill, market insiders said.
East Coast rebar dealers continue to lament that domestic rebar pricing remains too close to that of imports to spur much competition from imports for meager new sales.
"Right now, we're just hanging out at the bottom," the rebar trader said about current pricing for import rebar at $36.50-37.50/cwt. "Domestic rebar right now it worth the most."
On the import side, US Gulf Coast loaded truck basis rebar is discussed unchanged on the week at $36.50/cwt. ($805/mt or $730/nt), rebar traders said. US East Coast loaded truck basis rebar remains steady to this past week at $37/cwt. ($816/mt or $740/nt).
In the scrap market, July Ohio Valley shredded scrap settled flat to $10/gt ($10/mt) less versus June settles at $370-380/gt ($376- 386/mt) delivered to customer, while East shredded scrap was flat to June at $370/gt ($376/mt). Scrap traders tell SteelOrbis that August scrap pricing is being discussed sideways to up versus July market settle prices.
"We are hearing the same about higher August scrap prices, but it will largely depend on how much supply the mills have in inventory," an East Coast rebar trader said. "If the mills come out big for August we could be looking at the bottom of the market, but if they do not, (scrap) prices could continue lower."
US scrap prices seen at strong sideways to up for August on reduced yard inventories
Thursday, 18 July 2024 21:48:17 (GMT+3) | San Diego
US scrap prices for August are now discussed at strong sideways to higher for August, as domestic scrap dealers indicate supplies at local yards in both the Midwest and Northeast are off sharply month on month.
Last week, East Coast scrap traders estimated local yard inventories were down between 20-30 percent on a combination of hot weather and low prices being paid at yards.
One Midwest scrap dealer told SteelOrbis that his inflows from Tier 1 and Tier 2 manufactures he normally deals with were off sharply. "My inflows are pitiful," the Midwest scrap dealer said, predicting strong sideways scrap pricing for August. "My inventories on the ground are off by probably 50 percent."
The dealer explained the July 4 weekly holiday shut-downs at Midwest manufactures would account for some of the month-to- month scrap losses at his yard, while reduced inflows from scrap peddlers due to recent heatwaves and low yard prices might account for some reductions as well.
"It's really hard to predict the scrap pricing anymore," he added. "The outlook seems to be changing every week, and the closer you get to the new month, the more it seems to be bouncing around."
Another market insider concurred with the recent call for strong sideways August scrap pricing on reduced scrap inflows, though cautioned that mills have also reduced their buying activity because of low finished steel demand.
"We may be at the bottom (for scrap prices), but I believe at this time we are strong sideways at best," he said. "We're likely to see sideways pricing and probably continue in a tight range until Q4," he added. "Scrap inflows are slow, but the mills order books are soft as well."
Another scrap dealer heard talk about steady to potentially higher August scrap prices, though cautioned that it will largely depend on how much inventories are being held by the mills when the August buy cycle starts in the first and second week of August.
"We're hearing the same thing about higher scrap prices for August, but that does not mean it will happen," he said. "It is all about mill supply. How much supply do they have? If they are big buyers (this) month, we might be looking at the (price) bottom. If they are not big buyers, we could see numbers go down."
July scrap pricing settled in the Ohio Valley flat to down from June levels mostly on reduced demand for finished steel products like automobiles and appliances. In the US Northeast, scrap prices settled mostly higher for July, as strong export demand for scrap and tight yard inventories supported prices.
A strong sideways August scrap forecast would put Midwest busheling scrap at or above the July settle price of $355-375/gt ($361- 381/mt) delivered to mill, while HMS#1, which has a more limited application locally, would be at or above $320/gt ($325/mt) delivered, scrap market insiders said. P&S scrap and shredded grades would be at or above $345-355/gt ($351-361/mt), and $370-380/gt ($376-386/mt) delivered to mill respectively, scrap market insiders told SteelOrbis.
In the US East Coast scrap markets, busheling scrap in the vicinity of Pittsburgh would be at or above $350-385/gt ($356-391/mt) delivered to mill, while shredded scrap would be at or above the July settle of $370/gt ($376/mt) delivered to mill. P&S grades would be at or above $320-340/gt ($325-345/mt), while HMS#I would be at or above $290-315/gt ($295-320/mt) delivered to mill.
On the finished steel side, on July 15, US steel maker Nucor announced its weekly Consumer Spot Price -the price it charges for hot-rolled coils at all of its producing mills- would decline another $10/gt ($10/mt) to $660/gt ($728/mt), following two weeks of steady pricing at $670/st ($739/mt) FOB mill, the steel makers said in a letter to all of its customers. Since releasing the CSP index in early April, Nucor's HRC prices have declined nearly 20.5 percent as demand for finished steel goods remains muted amid high interest rates, soaring year-over-year inflation statistics, high energy prices, and a looming US presidential election in November.
