= US Wire Rod Prices Steady to Lower on Scant Demand, Lower Ju= ne Scrap Outlook

Thursda= y, 06 June 2024 20:17:48 (GMT+3) San Diego

US w= ire rod prices were steady to lower this week, as low domestic demand persi= sts 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/m= t or $820/nt).

On the import front, wire rod mesh DD= P loaded truck basis US Gulf is discussed at $37.75/cwt. ($832/mt or $755/n= t), compared with earlier assessments at $38.00-38.50/cwt. ($838-849/mt or = $760-$770/nt).

SteelOrbis contacts said that wire ro= d imports could be of more interest in the US since the June 3 Biden Admini= stration extension of the exemption of Ukraine from the Section 232 tariffs= on steel products.

The exemption, which went into e= ffect on June 1, 2022, and now is extended until June 1, 2025, includes spe= cial provision which excludes from the Section 232 tariffs steel products w= hich 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. <= /div>

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"As a result of this Biden extension, billets from Ukraine a= re 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 m= arket insider said.

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US Domestic Rebar Prices Dip Amid Low Demand and = Lower June

Scrap Expectations

Wednesday, 05 June 2024 23:05:47 (GMT+3) San Diego=

Continuati= on of declining domestic rebar pricing amid ample supply also is making imp= orted rebar product less competitive, limiting the purchase and movement of= export rebar through US ports, contacts said.

Midwest domestic rebar prices a= re assessed at $38.50-$39.50/cwt. ex-mill ($848-$871/mt or $770-$790/nt) ve= rsus 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 Midw= est 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'r= e hearing a $20-$30/nt ($22-$33/mt) drop for June domestic shredded scrap&q= uot;

<= span>"We're seeing ample supply with = no demand," opined one East Coast rebar insider. "The import/expo= rt market has declined quite a bit, and domestic steel products are disrupt= ing imports for the first time," he said. "With additiona= l 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 mark= et can compete with the domestic suppliers."

On the Gulf Coast, CFR FOB rebar is discussed at $39-$40/cwt, ($86= 0-$882/mt or $780-$800/nt) versus the previous week's $41-$42/cwt. ($904-$9= 26/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.

<= b>US Extends Section 232 Tariff Exemptions for Ukrainian Steel

Monday, 03 June 202= 4 15:01:53 (GMT+3) Istanbul

According to a statement released by the White House, th= e US government has decided to extend the temporary suspension of Section 2= 32 tariffs on Ukrainian steel for another year. The tariffs were first susp= ended in May 2022 and then again in May 2023, as Steel Orbis previously rep= orted.

"= Ukraine's steel industry continues to be significantly disrupted by the Rus= sian Federation's unjustified, unprovoked, unyielding, and unconscionable w= ar against Ukraine. The significant disruption in Ukraine's steel productio= n has decreased the total amount of steel produced by Ukraine. The amount o= f steel imported into the United States from Ukraine decreased in 2023 comp= ared 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 Stat= es.

At the sa= me time, the steel industry has been historically important to Ukraine, and= both the United States and Ukraine have an interest in maintaining that in= dustry as an economic lifeline while the country recovers, US President Joe= Biden stated.

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