While US domestic rebar mills have remained firm with their pricing overall after the slight dip in scrap prices earlier this month, sources tell SteelOrbis that some large distributors have been offering deals at mill pricing or below, which has in turn forced some mills to be more flexible at the negotiation table. So while many customers are still paying around $27.00 cwt. ($540/nt or $595/mt) ex-mill for domestic rebar, new outlier offers have been heard at up to $1.00-$2.00 cwt. ($20-$40/nt or $22-$44/mt) below, but sources are quick to point out that this does not constitute a downtrend.
“Mills are still eyeing an increase,” one source said. “Most likely going into the first quarter but maybe earlier depending on what happens with imports.” Traders and large distributors do not seem to be too concerned with the preliminary margins due next month in the newest AD/CVD case against rebar imports, but US mills are allegedly “gearing up” for high margins to “pave the way” for higher domestic transaction prices.