Update to the Start of February – Rebar Market Comments & Scrap Trend
February scrap numbers for Chicago finalized this week off $30/ton to settle at $408/Ton down from $438/Ton in January. Despite record cold temperatures taking their toll on scrap collections, poor demand from the mills on the buy side was enough to force downward pressure in recent weeks on the price. This downward trend has been felt the last 7-10 days and was a large contributor to the recent repeal of the domestic mills scheduled $20/Ton hike for Feb 1st.
Because the scrap decrease is larger than the $20/Ton concession by the mills, and the near term outlook for scrap does a little bit but not fare much better, expect continued pressure on the mills to further cut into their recent increases. Mills are hoping the cold snap which is gripping the country finally breaks and an increase in demand will thwart the downward pressure.
Import pricing has remained in-check as February has started. Replacement numbers are sideways the last 2 weeks and still higher than the October/November lows.
Sales Merchant at Adelphia Metals