Long Products
February 7, 2023
CRU: Higher Costs, Lower Demand Flatten US Longs Prices
Written by Alexandra Anderson
The US long products market was largely stable this month, as end-use demand remained subdued, and buyers continued to work through inventories. Scrap prices rose in January, fuelling bullish sentiments, but sluggish activity limited any expansion in margins. As a result, rebar, merchant bar, and structurals were all flat month-on-month (MoM). Wire rod prices decreased $1 per cwt MoM, to $55 pert cwt.
Despite edging lower, one mill did announce an increase in wire rod prices due to higher scrap and operational costs. The recent uptrend in scrap has also narrowed margins, supporting mill efforts to raise prices. However, end-use demand has yet to see significant recovery, particularly in the residential construction sector, leaving suppliers with persistent inventory overhang.
