A modest drop in scrap prices this month combined with a more sideways prediction for November have improved the outlook for the US domestic rebar market. Sources tell SteelOrbis that deals underneath the general spot price range are not as frequent as last week, and the discount amounts are starting to narrow. Most transactions are still taking place in the wide range of $27.00-$29.00 cwt. ($540-$600/nt or $595-$640/mt) ex-mill, but while only a few buys were made in the last few weeks at the top end of the range, sources say average prices are gradually shifting upward within it.
Some sources are still convinced a price increase could be on the horizon, and that mills are “biding their time,” eager for an end-of-quarter/end-of-year profit margin boost. Whether higher prices come in the form of a published increase or diminished opportunity for deals, sources say the US domestic market should soon mirror the attempt at an upward trend in import rebar offers.