US Wire Rod Prices Steady to Lower on Scant Demand, Lower June Scrap Outlook
Thursday, 06 June 2024 20:17:48 (GMT+3) San Diego
US wire rod prices were steady to lower this week, as low domestic demand persists and expectations continue to mount for lower June scrap prices compared with May.
With US scrap expected to decline $20-30/nt ($22-33/mt) for June versus May settled mill values, sources continue to tell SteelOrbis that domestic mills are competing with themselves, giving buyers leverage when booking wire rod orders. Domestic wire rod pricing is reported steady in limited trade at $38.00-39.00/cwt. ex-mill ($838-860/mt or $760-780/nt), unchanged to pricing reported at mid-May. In early May, the trades were discussed at $41.00/cwt. ($904/mt or $820/nt).
On the import front, wire rod mesh DDP loaded truck basis US Gulf is discussed at $37.75/cwt. ($832/mt or $755/nt), compared with earlier assessments at $38.00-38.50/cwt. ($838-849/mt or $760-$770/nt).
SteelOrbis contacts said that wire rod imports could be of more interest in the US since the June 3 Biden Administration extension of the exemption of Ukraine from the Section 232 tariffs on steel products.
The exemption, which went into effect on June 1, 2022, and now is extended until June 1, 2025, includes special provision which excludes from the Section 232 tariffs steel products which are melted and poured in Ukraine and further processed in an EU member state. Steel products which meet this requirement are also not subject to the quota limits of the EU Tariff Rate Quota (TRQ) Agreement.
"As a result of this Biden extension, billets from Ukraine are now able to be converted to wire rod in Poland [or any EU state], which are not subject to the 25 percent Section 232 tariffs," a SteelOrbis market insider said.
US Domestic Rebar Prices Dip Amid Low Demand and Lower June Scrap Expectations
Wednesday, 05 June 2024 23:05:47 (GMT+3) San Diego
US domestic rebar prices were marginally lower this week on the heels of continued low local rebar demand and a growing expectation for lower settled scrap pricing in June, market insiders told SteelOrbis this week.
Continuation of declining domestic rebar pricing amid ample supply also is making imported rebar product less competitive, limiting the purchase and movement of export rebar through US ports, contacts said.
Midwest domestic rebar prices are assessed at $38.50-$39.50/cwt. ex-mill ($848-$871/mt or $770-$790/nt) versus the previous week's, $39.50-$40.50/cwt. ($871-$893/mt or $790-$810/nt) assessments.
"This week's prices are a little lower," said one Midwest rebar dealer. "Prices have dropped by about $10/nt ($9.92/mt) for rebars. Another contact said, "June scrap hasn't settled yet, but we're hearing a $20-$30/nt ($22-$33/mt) drop for June domestic shredded scrap"
On the US East Coast, loaded truck domestic rebar is discussed in a wide $37.00-$41.00 range ($815-$904/mt or $740-$820/nt), depending on buyer location, though contacts said most completed deals in the region would be getting done around $37.50-$38.00/cwt. ($827-$838/mt or $750-$760/nt) little changed on the week as domestic supplies on the ground continue to make import rebars less attractive, insiders said.
"We're seeing ample supply with no demand," opined one East Coast rebar insider. "The import/export market has declined quite a bit, and domestic steel products are disrupting imports for the first time," he said. "With additional steelmaking capacity coming online, we expect to see the domestic market displacing imports even more. For now, I just don't see how the import market can compete with the domestic suppliers."
On the Gulf Coast, CFR FOB rebar is discussed at $39-$40/cwt, ($860-$882/mt or $780-$800/nt) versus the previous week's $41-$42/cwt. ($904-$926/mt or $820-$840/nt) range. Domestic rebar pricing in the Houston area is discussed at $37-$38.50/cwt. ($816-$849/mt or $740-$770/nt)compared with exports from Mexico arriving at $38.50-$39.50 ($849-$871/mt or $770-$790/nt), market insiders said.
US Extends Section 232 Tariff Exemptions for Ukrainian Steel
Monday, 03 June 2024 15:01:53 (GMT+3) Istanbul
According to a statement released by the White House, the US government has decided to extend the temporary suspension of Section 232 tariffs on Ukrainian steel for another year. The tariffs were first suspended in May 2022 and then again in May 2023, as Steel Orbis previously reported.
"Ukraine's steel industry continues to be significantly disrupted by the Russian Federation's unjustified, unprovoked, unyielding, and unconscionable war against Ukraine. The significant disruption in Ukraine's steel production has decreased the total amount of steel produced by Ukraine. The amount of steel imported into the United States from Ukraine decreased in 2023 compared to 2022, and it is still below the average import volume prior to 2021. In 2023 the amount of steel imported into the United States from Ukraine accounted for less than 1 percent of all steel imports into the United States.
At the same time, the steel industry has been historically important to Ukraine, and both the United States and Ukraine have an interest in maintaining that industry as an economic lifeline while the country recovers, US President Joe Biden stated.
