Rebar & Scrap Market Update
This week November scrap numbers posted down as expected. Chicago posted down $30/Ton at $325 from $355. This move was generally expected as the market had predicted a $20-$40/ton in late October. As such, most major cities followed a similar trend. Looking ahead in scrap, as the weather worsens, typically scrap is more difficult to collect, reducing the supply and putting upward pressure on the price in the winter. That trend has yet to be seen as winter has only recently begun in most of the states. Scrap pricing news is being dominated by a declining export scrap number, largely to the middle east and Turkey. While the US does not export a huge amount of scrap it is enough to impact the delicate balance of scrap here in the states. The effects of this are being seen currently. Expect the trend moving ahead to be sideways to down as we head into winter.
Rebar continues the path reported 2 weeks ago. Imports continue to be soft while domestics are stable. On the import side, “cheap” stock length imports that are currently in inventory are still tough to find while the future price is still moving downward. On the domestic front, supply is starting to catch up with demand. Shipments are still good from the mills thru the first two weeks of November but looking at the months ahead, there may be certain availabilities developing. At the moment mills are currently holding firm on pricing.