SteelOrbis reported last week that dealmaking was rampant in the US domestic rebar market, despite the flurry of price increases seen in the last month. Sources say that deals are indeed still available for certain customers, which has raised questions about the latest round of price increases. Last week, Nucor announced it would raise the price on 20-foot rebar by $1.00 cwt. ($20/nt or $22/mt), and earlier this week, Gerdau implemented an across-the-board $1.00 cwt. increase.
Other mills have not yet responded to Gerdau, and sources say there’s a good chance they won’t. With import offers continuing to plunge and predictions for June scrap prices now pointing downward, mills have lost the leverage needed to keep prices up. For now, spot prices are still in the general range of $29.00-$33.50 cwt. ($580-$670/nt or $639-$739/mt) ex-mill—unchanged in the last week—but the range could soften again by next week if market conditions do not improve. Prices will only stay high, sources say, if somehow Gerdau gets their increase to stick and other mills follow suit.