Stable Lead Times, Low Imports, Scrap Hikes Boost Long Products Prices in the U.S.

Editor’s note: The following analysis of the U.S. rod and bar market was contributed by CRU Steel Analyst Ryan McKinley. Steel Market Update will periodically expand its coverage of the steel market with long products content from CRU as an added benefit to our members.

U.S. mills announced wire rod price increases of $1.50/cwt across the board, taking effect either Dec. 1 or Dec. 31. The earliest of these price increases appear to be sticking, driving up prices so far by about $1.00/cwt. Market participants expect the full amount to be realized in the first quarter of 2019. Other long product prices were little changed month to month, with limited rebar imports into the U.S. helping to dry up a supply surplus in the Northeast that was caused by reciprocal steel duties from Canada. Stable year-end demand has supported both beam and merchant bar prices.