Although scrap numbers have not fully settled in the US, the trend is looking rather bleak—in fact, sources say the decrease might be enough this time to spur US rebar mills into action. So far, lower and lower prices have been heard in the market as customer-specific dealmaking spreads from the biggest customers to the smallest. This week, the spot price range has dropped by another $1.00 cwt. ($20/nt or $22/mt), as more transactions are reported for much lower levels. Now topping out at $30.00 cwt. ($600/nt or $661/mt) ex-mill—with many deals heard for several dollars beneath—it is unclear just yet what a significant official price decrease would do to the disorganized market. Then again, some sources contend that with demand still decent, mills don’t have much incentive to make their rampant deals “official”.
As for the import rebar market, Turkish offers have declined yet again, down to $18.00-$19.00 cwt. ($360-$380/nt or $397-$419/mt) DDP loaded truck in US Gulf ports, reflecting a $0.50 cwt. ($10/nt or $11/mt) drop since last week. However, Celsa CEO and IREPAS Chairman Kim Marti said at the SteelOrbis Fall Spring Conference & 73rd IREPAS Meeting started in Rome this week that declining steel prices are “closer to the bottom.”