Return-Path: Delivered-To: info@sterlingcal.com Received: from reseller401.webserversystems.com by reseller401.webserversystems.com with LMTP id oHOgKPHkrGZwCAQAchKAPA (envelope-from ) for ; Fri, 02 Aug 2024 08:53:53 -0500 Return-path: Envelope-to: info@sterlingcal.com Delivery-date: Fri, 02 Aug 2024 08:53:53 -0500 Received: from sender-232.fsu3.zcsend.net ([135.84.81.232]:45545) by reseller401.webserversystems.com with esmtps (TLS1.2) tls TLS_ECDHE_RSA_WITH_AES_256_GCM_SHA384 (Exim 4.96.2) (envelope-from ) id 1sZsjA-00179q-06 for info@sterlingcal.com; Fri, 02 Aug 2024 08:53:53 -0500 Received: from 172.30.242.50 by sender-232.fsu3.zcsend.net with SMTP id 172260682075933472; Fri, 02 Aug 2024 06:53:40 -0700 DKIM-Signature: a=rsa-sha256; b=iyyb3UW6dS+24Zk59YoiWY60byC4klDfexd9ANdBRVGSyQ732+rrO6qB1E9gcXaCieiMKYuBWpLSZjlyxQDE2QIeKhTTAYhn181fcL9SYB9AUxYD2o23iDgF2ThQqbE3WcRGKHnCix67DKR7jWjlE18BnPDFEMT23qfmL9XYPf4=; c=simple/simple; s=81024; d=staalx.com; v=1; bh=Mydha939T5zBnD5Ch38JFiEdS1LvTdTf+au6cKAEqpg=; h=date:from:to:message-id:subject:mime-version:content-type:list-unsubscribe:list-unsubscribe-post:x-csa-complaints; DKIM-Signature: a=rsa-sha256; b=d+kJdvg/+rOubKP+fdb2qVBOUoDuacn2whZpGKiiaTVIgNWvYc5xHpN/4CNknroZ4dWg8xQqexPsbtbPvUiemFdF7JhCc3Kd48y0zJeiVAf2mwDIW9SPdy03Dcn1BEIZiF/IeSkUfxH8n5hWbB51FFc3cOotvg81eLa7shWP0ZY=; c=simple/simple; s=k1; d=mail1.hvgpsnd.zcsend.net; v=1; bh=Mydha939T5zBnD5Ch38JFiEdS1LvTdTf+au6cKAEqpg=; h=date:from:to:message-id:subject:mime-version:content-type:list-unsubscribe:list-unsubscribe-post:x-csa-complaints; Date: Fri, 2 Aug 2024 06:53:40 -0700 (PDT) From: "StaalX" To: Andrew Sterling Message-ID: Subject: Will upward trending scrap prices give a boost to rebar and wire rod pricing? MIME-Version: 1.0 Content-Type: multipart/alternative; boundary="----=_Part_7154112_1590162754.1722606820741" List-Unsubscribe: , List-Unsubscribe-Post: List-Unsubscribe=One-Click X-CSA-Complaints: csa-complaints@eco.de Reply-To: campaign_769017310+zcreply.1c08f772a3c8caf2@zcsend.net X-JID: 3zbbfd3107516e2747240afb213f83dea99f3114ab6bc11315f109b5f5525d0f45.1c08f772a3c8ae9a X-campaignid: zohocampaigns.3zbbfd3107516e2747240afb213f83dea99f3114ab6bc11315f109b5f5525d0f45.zcb.1c08f772a3c8caf2.11699e4c0d54cff X-Zoho-RID: zohocampaigns.3zbbfd3107516e2747240afb213f83dea99f3114ab6bc11315f109b5f5525d0f45.zcb.1c08f772a3c8caf2.11699e4c0d54cff X-Mailer: Zoho Campaigns X-Report-Abuse: , X-Spam-Status: No, score=2.7 X-Spam-Score: 27 X-Spam-Bar: ++ X-Spam-Flag: NO ------=_Part_7154112_1590162754.1722606820741 Content-Type: text/plain;charset="UTF-8" Content-Transfer-Encoding: quoted-printable https://staalx.com August 2, 2024 (Scroll down for Steelorbis news) News from the Market http://staalx.com Will upward trending scrap prices give a boost to rebar and wire rod pricin= g? Market is looking for good news to reverse lackluster conditions It seems that scrap prices have finally bottomed out and on the way up agai= n. A bump of $20 /ton on shredded scrap is expected so how would thataffect= thelong products pricing? Although a reversal of raw materialsis welcomed by the rod and rebar produc= ers in the US and buyers and sellers of these products, it's probably not e= nough encouragement to attempt to get the prices up. Demand for long produc= ts is increasingly getting weak and an increase attempt will almost definit= ely won't hold and embarrass the mills attempting a price increase. In the meantime, mills are quietly lowering their prices for their main cus= tomers that don't need to buy domestic rebars. There aren't a great deal of= import offers that can compete with the low domestic prices now. Import of= fers would be too close to domestic. Only some EU made products with Ukrain= ian billets can provide 10-15% discount to the general import levels becaus= e they are tariff exempt. Similar landscape applies to the wire rod side of imports. Low carbon impor= ts have diminished over a year ago with only occasional import vessels show= ing up with smaller lots from Asia. Otherwisesome Greek and Polish origin w= ith Ukrainian billets find bigger volumes providing a greater buffer to dom= estic pricing. The market weighs heavy on mesh producers, especially for bu= ilding mesh used in commercial projects. The prices went so far down that t= he mesh makers had to announce price increases to stop the bleeding. Those = increase announcements are meeting a lot of resistance but the producers ma= y not have a choice but sticking to those price increases to avoid further = losses. Overall, summer doldrums are fully in effectand the long products market re= mains soft. At least scrap is supporting some price stability in August. St= ill there are high hopes when the buyers return from summer vacations to bu= y for Q4, the last good quarter of the year. All around team member: StaalX You already know http://staalx.com/ StaalX is your go to resource for compe= titive truckload pricing but did you also know that http://staalx.com Staal= X can offer import material mill direct at extremely competitive pricing? We offer merchant bars, wire rod, rebar, structurals, tubes, pipes and much= more. Call us to the discuss your large quantity order needs. http://steelorbis.com From our content partner, SteelOrbis US import rebar and wire rod prices flat as market looks to August scrap fo= r stability Thursday, 01 August 2024 20:42:04 (GMT+3) | San Diego US import rebar and wire rod prices were largely steady in limited trade th= is week as market insiders look to the August scrap market in the US for pr= ice stability. A combination of low finished steel demand, they say, with l= imited new construction-related spending, continues to limit the likelihood= of price gains for imports. The result is that domestic mills continue to = garner most of the limited new trade, import market insiders told SteelOrbi= s this week. During the week of July 22, market contacts said import prices were flat to= marginally lower, with many claiming prices had "bottomed" amid higher scr= ap expectations for August. At last report, August Midwest scrap is discuss= ed sideways to $20/gt ($22/mt) higher across all grades over July settles. = On the US East Coast, August scrap is talked strong sideways to July, with = potential for higher prices most likely for cuts and shredded grades depend= ing on how much scrap is directed at export markets. In the import rebar markets, US East Coast loaded truck basis rebar remains= steady at $37.00/cwt, ($816/mt or $740/nt), while US Gulf Coast loaded tru= ck rebar was also unchanged at $36.50/cwt., ($805/mt or $730/nt), market in= siders said. While higher August scrap prices could keep import rebar and wire rod price= s from falling further, few expect prices to rise much as low domestic pric= es limit the amount of imports able to be delivered to the US at workable m= argins for shippers. Rising freight rates, and ongoing tariffs they say, al= so limits exports to the US at current prices. "Wire rod prices are staying soft," said one Midwest rebar insider. "Compan= ies are lowering their prices to get more business, but there is little if any new business to be had." He continued. "Basically, t= here's very little rebar and wire rod imports coming in from places such as= Brazil, Europe and Korea, because low-carbon grades of steel are not compe= titive because US prices have fallen." Imports from Egypt are discussed steady, though trading remains sluggish 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/n= t), 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 qu= oted flat once again at $36.50-$38.00/cwt., ($805 to $838/mt or $730-$760/n= t), while wire rod mesh CFR FO USG was also steady following last week's de= cline to $39.00/cwt., ($860/mt or $780/nt). Imported rebar from Mexico on a loaded truck Houston basis is last discusse= d flat at $37.35/cwt ($823/mt or $747/nt), market insiders said, while Nort= h African rebar from Algeria on a delivered truck basis was unchanged for a= sixth week at $36.50/cwt., ($805/mt or $730/nt), market insiders said. Bul= garian supplies on a delivered truck basis are flat at $36/cwt., ($794/mt o= r $720/nt), they said. August scrap, could potentially rise versus July settled levels, as invento= ries at dealers on the US East Coast and Midwest are reportedly down betwee= n 20-50 percent on a combination of low inflows due to reduced Tier 1 and T= ier 2 manufacturing activity in the first half of 2024, and low inputs from= peddlers, given recent low prices and continued heat waves across the Midw= est and Northeast, scrap dealers told SteelOrbis. "If higher August scrap keeps rebar and wire rod prices stable, that's a ma= jor achievement given current demand levels," the rebar insider said. US domestic rebar and wire rod prices steady to up though price outlook rem= ains cloudy Wednesday, 31 July 2024 21:47:56 (GMT+3) | San Diego US domestic rebar and wire rod markets were steady to higher this week as a= growing number of market insiders told SteelOrbis that August scrap prices= were likely to rise, causing a bump in some finished steel prices, they sa= id. Starting during the week of July 22, market contacts said a price bottom fo= r rebar was likely at hand because of the growing call for a sideways to $2= 0/gt ($22/mt) delivered to mill rise in Midwest scrap values, especially fo= r prime grades, they said. While most agree, August scrap is likely to show= higher than July, the outlook for long steel products such as rebar and wi= re rod remains somewhat uncertain as inventories are said to be plentiful w= ith mills still prepared to offer buyer discounts to those with contracts i= n hand. "We need more demand in the market to make this the bottom (for rebar)," on= e Midwest rebar market insider told SteelOrbis. "As we move through the thi= rd quarter, we should see demand begin to pick up, but it will largely depe= nd on what the Federal Reserve decides to do with interest rates." Following a slight rise during the week of July 22, US domestic rebar is di= scussed $1.00/cwt. ($20/mt) higher at $38/cwt. FOB mill, versus previous as= sessments at $36.00-$38.00/cwt. ($720-760/nt or $794-838/mt). In the domestic wire rod market, prices remained flat to last week at $38.5= 0/cwt. ($849/mt or $770/nt) FOB mill, market insiders said. Wire rod mesh E= x-mill US rose $50/ton to $57.50/cwt ($1,268/mt), rebar dealers said. US Gulf Coast loaded truck rebar is discussed steady at $36.50/cwt. ($805/m= t or $730/nt), rebar traders said. US East Coast rebar was unchanged at $37= /cwt. ($816/mt or $740/nt). Speculation remains high that the Fed will reduce interest rates in the fal= l ahead of the national presidential election, which could spur spending in= the construction industry. High interest rates, market insiders claim, hav= e limited demand growth within the US construction industry as current interest rates continue at 23-year highs. According to ABC news, the outlook for a rate cut from Wall Street has shif= ted from "if to when," based on a months-long stretch of data that has esta= blished the key conditions for a rate cut: cooling inflation and slowing jo= b gains. As predicted by economists, the Fed decided to leave interest rates unchang= ed on July 31, deferring the decision until its next meeting in September, = offering the central bank "more time to ensure current trends hold," ABC Ne= ws said. "It's hard to tell if this is the (price) bottom for rebar," another East C= oast rebar insider told SteelOrbis. "If you go to the mill with an order in= hand, it's still a buyer's market, so you can pretty much get what you nee= d." On the topic of increased construction spending during the third quarter af= fecting the finished steel market, the rebar contact remains pessimistic. "Why would spending get any better," he said. "We are already in the perfec= t storm, with record high interest rates, high inflation including higher l= abor costs, as well as high debt levels and low confidence combining to slo= w our economy to a grinding halt." Some rebar insiders still caution that a solid price bottom for the long st= eel markets could depend on whether mills decide to purchase more scrap dur= ing the August buy cycle. Mill inventories, they say, will determine whethe= r the August outlook for higher scrap continues in the coming weeks. "It seems like the market feels somewhat more optimistic about pricing this= week, with many buyers willing to adjust their budgets to accommodate a hi= gher price of scrap," one scrap insider told SteelOrbis. US scrap prices seen sideways to $20/mt up for August as supply remains tig= ht Thursday, 25 July 2024 21:31:32 (GMT+3) | San Diego US scrap prices for August are now seen strong sideways with some reporting= prices could rise as much as $20/mt ($20/gt) across all grades on a delivered to mill basis from July levels, as inventories at= local scrap yards in the US Northeast and Midwest dwindle amid reduced collections, low finished steel demand, and lower reported man= ufacturing and construction activity, scrap market insiders and recent government and industry reports indicated to SteelOrbis= this week. The August outlook this week differs little from the week of July 15, when = the market consensus was a bit more vague, with August scrap reported at st= rong sideways to higher, on continued low demand for finished steel, increa= sed reports of reduced scrap yard inventories and a lull in July manufactur= ing activity caused by Fourth of July plant closures, which reduced mostly = prime grades of available scrap, insiders said. As reported by SteelOrbis earlier, East Coast scrap dealers estimated local= yard inventories were down between 20-30-percent in recent weeks on a comb= ination of hot weather and low prices being paid to peddlers. One Midwest s= crap dealer estimated his inflows from Tier 1 and Tier 2 manufacturers he n= ormally deals with were off as much as 50 percent. "There's very little clarity in the US scrap markets right now, but we expe= ct to hear more market chatter by the middle of next week," said one Midwes= t scrap market insider, reflecting on reports of higher August pricing. "Ri= ght now, we're hearing that scrap is in short supply, and the mills know it= ." Reports continue to circulate in steel trading circles of "across the board= " price increases for next month, he said, adding that more concrete discus= sions about August scrap pricing is expected early to mid-next week as the = August buy cycle draws closer. "There's reports of plus $20 (per metric ton) across the board for scrap fo= r August, and it very well could be," he added. Another scrap contact said, "I've been on vacation and came back to a (mess= )," he said. "I can see strong sideways for next month, with prime grades (busheling and #1 bundles) having the best chance = for up money." SteelOrbis steel contacts continue to report that low finished steel prices= such as hot-and-cold rolled coils, used for appliances and automobiles, as= well as rebar used in construction, could have bottomed because of the gro= wing outlook for higher scrap values in the near term. "I think prices have definitely bottomed," said one Midwest rebar market co= ntact, reporting on a slight bump in domestic rebar valuations in the Chica= go area following several months of consistent declines. "We're hearing mor= e and more reports that August scrap prices are rising." Based on July US scrap settled prices, a sideways to $20/mt increase for Au= gust would put Midwest prime grade busheling scrap at flat to $20/gt 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 to $20/gt= above $320/gt ($325/mt) delivered, scrap market insiders said. P&S scrap a= nd shredded grades would be at to $20/gt above $345-355/gt ($351-361/mt), a= nd $370-380/gt, ($376-386/mt) delivered to mill respectively, scrap market = insiders told SteelOrbis. In the US East Coast scrap markets, busheling scrap vicinity Pittsburgh wou= ld be at to $20/gt above $350-385/gt ($356-391/mt) delivered to mill, while= shredded scrap would be at to $20/gt above the July settle of $370/gt ($37= 6/mt) delivered to mill. P&S grades would be at to $20/gt higher than the $= 320-340/gt ($325-345/mt) reported delivered to mill range, while HMS#I woul= d be at to $20/gt above $290-315/gt ($295-320/mt) delivered to mill. On the finished steel side, on July 22, US steel maker Nucor announced its = weekly Consumer Spot Price -the price it charges for hot-rolled coils at al= l of its producing mills- was steady to the previous week at $650/st ($717/= mt). Since early April, Nucor's HRC prices have declined nearly 21.7 percen= t as demand for finished steel goods remained muted amid high interest rate= s, soaring year-over-year inflation statistics, high energy prices, and a l= ooming US presidential election in November. Spot HRC is reported flat this week at $32.50-$33/cwt. ($717-728/mt or $650-660/nt), market insi= ders told SteelOrbis. Recent government and industry reports seem to support recent market inside= r claims of steady prices and some limited price declines across finished s= teel grades. According to the US Census Bureau, construction spending during May 2024 wa= s estimated at a seasonally adjusted annual rate of $2,139.8 billion, 0.1 p= ercent (=C2=B11.0 percent) below the revised April estimate of $2,142.1 bil= lion. The May figure is 6.4 percent (=C2=B11.6 percent) above the May 2023 estimate of $2,011.8 billion. During= the first five months of this year, construction spending amounted to $836= .3 billion, 8.8 percent (=C2=B11.2 percent) above the $768.6 billion for th= e same period in 2023. On the manufacturing side, the S&P Global Flash US Manufacturing PMI index = declined unexpectedly to 49.5 in July 2024, the lowest reading so far this = year, compared to 51.6 in June and forecasts of 51.7. The reading signaled = a deterioration in business conditions within the US goods-producing sector= amid declines in new orders, production and inventories. A reduced rate of= employment growth also acted as a drag, the report said. Meanwhile, suppli= ers' delivery times lengthened marginally, though the lengthening was only = very marginal. On the price front, the S&P report said prices charged for goods leaving th= e factory gate rose the least in a year, but input prices rose at a faster = pace due in part costs for raw materials, energy and logistics. Finally, bu= siness sentiment ticked up from June's 19- month low, often linked to the e= xpansion of capacity and the anticipation of demand improving over the comi= ng year, especially after the (November presidential) election, the report = said. Do you have any questions? Check out our FAQ! Check out the most frequently asked questions about the service and product= s of StaalX. We are always here to chat with you in the chat boxes from the= site or on the support telephone number below. https://www.staalx.com/faqs FAQs Contact us support@staalx.com or +1 (708) 697-3227 Follow StaalX on https://www.linkedin.com/company/rebar-revolution https://www.linkedin.com/company/rebar-revolution LinkedIn https://www.facebook.com/Staal.X/ https://www.facebook.com/Staal.X/ Facebook https://www.instagram.com/staal.x/ https://www.instagram.com/staal.x/ Instagram https://www.twitter.com/rebarrevolution https://www.twitter.com/rebarrevolution X Want to change how you receive these emails? You can https://qprdy-zgpvh.maillist-manage.net/ua/optout?od=3D3zbbfd310751= 6e2747240afb213f83dea99f3114ab6bc11315f109b5f5525d0f45&rd=3D1c08f772a3c8caf= 2&sd=3D1c08f772a3c8a709&n=3D11699e4c0d54cff Unsubscribe or https://qprdy-zg= pvh.maillist-manage.net/ua/commpref?od=3D3zbbfd3107516e2747240afb213f83dea9= 9f3114ab6bc11315f109b5f5525d0f45&rd=3D1c08f772a3c8caf2&sd=3D1c08f772a3c8a70= 9&n=3D11699e4c0d54cff Update your preferences ------=_Part_7154112_1590162754.1722606820741 Content-Type: text/html;charset="UTF-8" Content-Transfer-Encoding: quoted-printable Will upward trending scrap prices give a boost to rebar and wire rod pric= ing? Market is looking for good news to reverse lackluster co= nditions
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August 2, 2024  (Scroll down for Steelorbis news)

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News fro= m the Market

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Will upward trend= ing scrap prices give a boost to rebar and wire rod pricing?<= /p>


Market is looking for good news = to reverse lackluster conditions

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It seem= s that scrap prices have finally bottomed out and on the way up again. = ; A bump of $20 /ton on shredded scrap is expected so how would that a= ffect the long products pricing?  


Although a r= eversal of raw materials is welcomed by the rod and rebar producers in= the US and buyers and sellers of these products, it's probably not enough = encouragement to attempt to get the prices up.  Demand for long produc= ts is increasingly getting weak and an increase attempt will almost definit= ely won't hold and embarrass the mills attempting a price increase. &n= bsp;


= In the meantime, mills are quietly lowering their prices fo= r their main customers that don't need to buy domestic rebars.  There = aren't a great deal of import offers that can compete with the low domestic= prices now.  Import offers would be too close to domestic.  Only= some EU made products with Ukrainian billets can provide 10-15% discount t= o the general import levels because they are tariff exempt.  

=

Similar landscape applies to the wire rod side of imports.  Lo= w carbon imports have diminished over a year ago with only occasional impor= t vessels showing up with smaller lots from Asia.  Otherwise some= Greek and Polish origin with Ukrainian billets find bigger volumes providi= ng a greater buffer to domestic pricing.  The market weighs heavy on m= esh producers, especially for building mesh used in commercial projects.&nb= sp; The prices went so far down that the mesh makers had to announce price = increases to stop the bleeding.  Those increase announcements are meet= ing a lot of resistance but the producers may not have a choice but stickin= g to those price increases to avoid further losses.  

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= Overall, summer doldrums are fully in effect and the long products mar= ket remains soft.  At least scrap is supporting some price stability i= n August.  Still there are high hopes when the buyers return from summ= er vacations to buy for Q4, the last good quarter of the year.

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All aroun= d team member: StaalX

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You already know StaalX is your go to reso= urce for competitive truckload pricing but did you also know that StaalX can offer import = material mill direct at extremely competitive pricing?

We offer merchant bars, wire rod, rebar, structurals, tu= bes, pipes and much more.


Call u= s to the discuss your large quantity order needs.

=


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From our con= tent partner, SteelOrbis

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US import rebar and wire rod prices flat as market looks to August= scrap for stability 

Thursday, 01 August 2024 20:42:04 (GMT+3) | San Diego 

US import rebar and wire rod= prices were largely steady in limited trade this week as market insiders l= ook to the August scrap market in the US for price stability. A combination= of low finished steel demand, they say, with limited new construction-rela= ted spending, continues to limit the likelihood of price gains for imports.= The result is that domestic mills continue to garner most of the limited n= ew trade, import market insiders told SteelOrbis this week. 

During the week of July 22, = market contacts said import prices were flat to marginally lower, with many= claiming prices had "bottomed" amid higher scrap expectations fo= r August. At last report, August Midwest scrap is discussed sideways to $20= /gt ($22/mt) higher across all grades over July settles. On the US East Coa= st, August scrap is talked strong sideways to July, with potential for high= er prices most likely for cuts and shredded grades depending on how much sc= rap is directed at export markets. 

In the import rebar markets, US East Coast loaded tru= ck basis rebar remains steady at $37.00/cwt, ($816/mt or $740/nt), while US= Gulf Coast loaded truck rebar was also unchanged at $36.50/cwt., ($805/mt = or $730/nt), market insiders said. 

While higher August scrap prices could keep import re= bar and wire rod prices from falling further, few expect prices to rise muc= h as low domestic prices limit the amount of imports able to be delivered t= o the US at workable margins for shippers. Rising freight rates, and ongoin= g tariffs they say, also limits exports to the US at current prices. <= /font>

<= /span>
"Wire rod pric= es are staying soft," said one Midwest rebar insider. "Companies = are lowering their prices to get more business, but there is little if any new business to be had." He continued. "Ba= sically, there's very little rebar and wire rod imports coming in from plac= es such as Brazil, Europe and Korea, because low-carbon grades of steel are= not competitive because US prices have fallen." 

Imports from Egypt are discussed s= teady, though trading remains sluggish 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.

<= font style=3D"font-size: 12pt;">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), while wire rod mesh CFR FO USG was also= steady following last week's decline to $39.00/cwt., ($860/mt or $780/nt).=  

<= /font>
Imported reb= ar from Mexico on a loaded truck Houston basis is last discussed flat at $3= 7.35/cwt ($823/mt or $747/nt), market insiders said, while North African re= bar from Algeria on a delivered truck basis was unchanged for a sixth week = at $36.50/cwt., ($805/mt or $730/nt), market insiders said. Bulgarian suppl= ies on a delivered truck basis are flat at $36/cwt., ($794/mt or $720/nt), = they said. 

Au= gust scrap, could potentially rise versus July settled levels, as inventori= es at dealers on the US East Coast and Midwest are reportedly down between = 20-50 percent on a combination of low inflows due to reduced Tier 1 and Tie= r 2 manufacturing activity in the first half of 2024, and low inputs from p= eddlers, given recent low prices and continued heat waves across the Midwes= t and Northeast, scrap dealers told SteelOrbis. 

"If higher August scrap keeps rebar= and wire rod prices stable, that's a major achievement given current deman= d levels," the rebar insider said.

<= font style=3D"font-size: 12pt;">US domestic rebar and wire rod prices st= eady to up though price outlook remains cloudy 

<= span>Wednesday, 31 July 2024 21:47:56 (GMT= +3) | San Diego 

US domestic rebar and wire rod markets were steady to higher this week a= s a growing number of market insiders told SteelOrbis that August scrap pri= ces were likely to rise, causing a bump in some finished steel prices, they= said. 

Starti= ng during the week of July 22, market contacts said a price bottom for reba= r was likely at hand because of the growing call for a sideways to $20/gt (= $22/mt) delivered to mill rise in Midwest scrap values, especially for prim= e grades, they said. While most agree, August scrap is likely to show highe= r than July, the outlook for long steel products such as rebar and wire rod= remains somewhat uncertain as inventories are said to be plentiful with mi= lls still prepared to offer buyer discounts to those with contracts in hand= . 

=
"We ne= ed more demand in the market to make this the bottom (for rebar)," one= Midwest rebar market insider told SteelOrbis. "As we move through the= third quarter, we should see demand begin to pick up, but it will largely = depend on what the Federal Reserve decides to do with interest rates."=  

<= /font>
Following a = slight rise during the week of July 22, US domestic rebar is discussed $1.0= 0/cwt. ($20/mt) higher at $38/cwt. FOB mill, versus previous assessments at= $36.00-$38.00/cwt. ($720-760/nt or $794-838/mt). 
=

In the domestic wire rod market, price= s remained flat to last week at $38.50/cwt. ($849/mt or $770/nt) FOB mill, = market insiders said. Wire rod mesh Ex-mill US rose $50/ton to $57.50/cwt (= $1,268/mt), rebar dealers said. 

US Gulf Coast loaded truck rebar is discussed steady at = $36.50/cwt. ($805/mt or $730/nt), rebar traders said. US East Coast rebar w= as unchanged at $37/cwt. ($816/mt or $740/nt). 

Speculation remains high that the Fed wil= l reduce interest rates in the fall ahead of the national presidential elec= tion, which could spur spending in the construction industry. High interest= rates, market insiders claim, have limited demand growth within the US construction industry as current interest rates continue at 23-year highs.<= /font>

<= /div>
According to ABC news, the outlook = for a rate cut from Wall Street has shifted from "if to when," ba= sed on a months-long stretch of data that has established the key condition= s for a rate cut: cooling inflation and slowing job gains. 

As predicted by economists, the F= ed decided to leave interest rates unchanged on July 31, deferring the deci= sion until its next meeting in September, offering the central bank "m= ore time to ensure current trends hold," ABC News said. 

"It's hard to tell if this= is the (price) bottom for rebar," another East Coast rebar insider to= ld SteelOrbis. "If you go to the mill with an order in hand, it's stil= l a buyer's market, so you can pretty much get what you need." 

On the topic of increase= d construction spending during the third quarter affecting the finished ste= el market, the rebar contact remains pessimistic. 

= "Why would spending get any better,&q= uot; he said. "We are already in the perfect storm, with record high i= nterest rates, high inflation including higher labor costs, as well as high= debt levels and low confidence combining to slow our economy to a grinding= halt." 

Some= rebar insiders still caution that a solid price bottom for the long steel = markets could depend on whether mills decide to purchase more scrap during = the August buy cycle. Mill inventories, they say, will determine whether th= e August outlook for higher scrap continues in the coming weeks. 

=
"It seems like the mar= ket feels somewhat more optimistic about pricing this week, with many buyer= s willing to adjust their budgets to accommodate a higher price of scrap,&q= uot; one scrap insider told SteelOrbis.
=


=
US scrap = prices seen sideways to $20/mt up for August as supply remains tight <= /b>

Thursday, 25 Ju= ly 2024 21:31:32 (GMT+3) | San Diego
US scrap = prices for August are now seen strong sideways with some reporting prices c= ould rise as much as $20/mt ($20/gt) across all grades on a delivered to mill basis from July levels, as inventories at= local scrap yards in the US Northeast and Midwest dwindle amid reduced collections, low finished steel demand, and lower reported man= ufacturing and construction activity, scrap market insiders and recent government and industry reports indicated to SteelOrbis= this week. 

T= he August outlook this week differs little from the week of July 15, when t= he market consensus was a bit more vague, with August scrap reported at str= ong sideways to higher, on continued low demand for finished steel, increas= ed reports of reduced scrap yard inventories and a lull in July manufacturi= ng activity caused by Fourth of July plant closures, which reduced mostly p= rime grades of available scrap, insiders said. 

As reported by SteelOrbis earlier, East C= oast scrap dealers estimated local yard inventories were down between 20-30= -percent in recent weeks on a combination of hot weather and low prices bei= ng paid to peddlers. One Midwest scrap dealer estimated his inflows from Ti= er 1 and Tier 2 manufacturers he normally deals with were off as much as 50= percent. 

&qu= ot;There's very little clarity in the US scrap markets right now, but we ex= pect to hear more market chatter by the middle of next week," said one= Midwest scrap market insider, reflecting on reports of higher August prici= ng. "Right now, we're hearing that scrap is in short supply, and the m= ills know it." 

Reports continue to circulate in steel trading circles of "acro= ss the board" price increases for next month, he said, adding that mor= e concrete discussions about August scrap pricing is expected early to mid-= next week as the August buy cycle draws closer. 

"There's reports of plus $20 (per m= etric ton) across the board for scrap for August, and it very well could be= ," he added. 

Another scrap contact said, "I've been on vacation and came back = to a (mess)," he said. "I can see strong sideways for next month, with prime grades (busheling and #1 bundles) having the best chance = for up money."
SteelOrbis s= teel contacts continue to report that low finished steel prices such as hot= -and-cold rolled coils, used for appliances and automobiles, as well as reb= ar used in construction, could have bottomed because of the growing outlook= for higher scrap values in the near term. 

"I think prices have definitely bottomed= ," said one Midwest rebar market contact, reporting on a slight bump i= n domestic rebar valuations in the Chicago area following several months of= consistent declines. "We're hearing more and more reports that August= scrap prices are rising." 

Based on July US scrap settled prices, a sideways to $20= /mt increase for August would put Midwest prime grade busheling scrap at fl= at to $20/gt above the July settle price of $355-375/gt ($361-381/mt) deliv= ered to mill, while HMS#1, which has a more limited application locally, wo= uld be at to $20/gt above $320/gt ($325/mt) delivered, scrap market insider= s said. P&S scrap and shredded grades would be at to $20/gt above $345-355/= gt ($351-361/mt), and $370-380/gt, ($376-386/mt) delivered to mill respecti= vely, scrap market insiders told SteelOrbis. 
=
<= font style=3D"font-size: 12pt;">In the US East Coast scrap markets, busheli= ng scrap vicinity Pittsburgh would be at to $20/gt above $350-385/gt ($356-= 391/mt) delivered to mill, while shredded scrap would be at to $20/gt above= the July settle of $370/gt ($376/mt) delivered to mill. P&S grades would b= e at to $20/gt higher than the $320-340/gt ($325-345/mt) reported delivered= to mill range, while HMS#I would be at to $20/gt above $290-315/gt ($295-3= 20/mt) delivered to mill. 

On the finished steel side, on July 22, US steel maker Nucor= announced its weekly Consumer Spot Price -the price it charges for hot-rol= led coils at all of its producing mills- was steady to the previous week at= $650/st ($717/mt). Since early April, Nucor's HRC prices have declined nea= rly 21.7 percent as demand for finished steel goods remained muted amid hig= h interest rates, soaring year-over-year inflation statistics, high energy = prices, and a looming US presidential election in November. Spot HRC is rep= orted flat this week at $32.50-$33/cwt. ($717-728/mt or $650-660/nt), market insi= ders told SteelOrbis. 

Recent government and industry reports seem to support recent mark= et insider claims of steady prices and some limited price declines across f= inished steel grades. 

According to the US Census Bureau, construction spending during Ma= y 2024 was estimated at a seasonally adjusted annual rate of $2,139.8 billi= on, 0.1 percent (±1.0 percent) below the revised April estimate of $= 2,142.1 billion. The May figure is 6.4 percent (±1.6 percent) above the May 2023 estimate of $2,011.8 billion. Duri= ng the first five months of this year, construction spending amounted to $8= 36.3 billion, 8.8 percent (±1.2 percent) above the $768.6 billion fo= r the same period in 2023.

On th= e manufacturing side, the S&P Global Flash US Manufacturing PMI index decli= ned unexpectedly to 49.5 in July 2024, the lowest reading so far this year,= compared to 51.6 in June and forecasts of 51.7. The reading signaled a det= erioration in business conditions within the US goods-producing sector amid= declines in new orders, production and inventories. A reduced rate of empl= oyment growth also acted as a drag, the report said. Meanwhile, suppliers' = delivery times lengthened marginally, though the lengthening was only very = marginal. 

On = the price front, the S&P report said prices charged for goods leaving the f= actory gate rose the least in a year, but input prices rose at a faster pac= e due in part costs for raw materials, energy and logistics. Finally, busin= ess sentiment ticked up from June's 19- month low, often linked to the expa= nsion of capacity and the anticipation of demand improving over the coming = year, especially after the (November presidential) election, the report sai= d.

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