Although US domestic rebar mills did not implement a second transaction price decrease once scrap prices were settled--their $1.00 cwt. ($22/mt or $20/nt) price decrease the week prior served as a "pre-emptive" response to scrap--it hasn't stopped spot prices from continuing to soften. Early rumors of a level-to-slightly-down scrap price trend in June coupled with slack demand has dragged spots down about $0.50 cwt. ($11/mt or $10/nt) in the last week into the range of $32.50-$33.50 cwt. ($717-$739/mt or $650-$670/nt) ex-mill. Sources tell SteelOrbis that the bleaker the outlook for the market for the remainder of Q2, the more vulnerable spot prices will be.
On the import side, offer prices from overseas and south of the border have dropped as well, but that hasn't translated into increased bookings. Traders tell SteelOrbis that many believe import offers have not hit bottom (a reversal of last week's sentiment), and they'd rather "ride it out" than buy too soon. As such, there's a decent chance Turkish and Mexican rebar offers will dip lower than their new range of $28.75-$29.75 cwt. ($634-$656/mt or $575-$595/nt), DDP loaded truck in US Gulf ports and DDP loaded truck delivered to US border states, respectively--both reflecting a decrease of $0.25 cwt. ($5.50/mt or $5/nt) in the last week.