US domestic rebar prices vulnerable to dealmaking
Although demand for rebar in the US domestic market remains strong, sources tell SteelOrbis that a combination of lower import offers and expectations of a scrap price decrease next month have left US rebar offers vulnerable to dealmaking, regardless of tonnage or customer size.
The average US domestic rebar spot prices are still hovering around $32.50-$34.00 cwt. ($650-$680/nt or $717-$750/mt) ex-mill, but transactions at the top end of the range are becoming less frequent. Meanwhile, certain large buyers have been able to negotiate below the bottom end of the range, for around $31.00 cwt. ($620/nt or $683/mt) ex-mill.
While the deals are not yet prevalent enough to pull the average spot price range downward, that situation could change once April scrap prices settle. However, sources are quick to note that regardless of widespread dealmaking, the chances of US domestic rebar mills announcing a price decrease are “slim to none.”
“Mills just had all those back-to-back increases,” said one source. “They might be open to deals, but they’re not about to make anything official.