Traders are treating the uptrend in the US import rebar market with caution, not wanting to raise prices “too much too fast” despite the gulf between Turkish rebar offers and US domestic spot prices. But the uptrend seems to be inevitable, not just in conjunction with scrap prices, but due to the backlog of already-arrived positions that were booked at higher prices. As such, sales prices in the US for Turkish rebar have lifted by $0.50 cwt. ($10/nt or $11/mt) in the last week, bringing offers into the range of $22.50-$23.50 cwt. ($450-$470/nt or $496-$519/mt) DDP loaded truck in US Gulf ports. Although the increase is scant, sources tell SteelOrbis that more moderate increases are on the horizon.
As for the US domestic rebar market, demand has still not caught up to supply, leaving spot prices languishing in the range of $31.50-$32.50 cwt. ($630-$650/nt or $694-$717/mt) ex-mill. Sources tell SteelOrbis that after disappointing Q1 results for many steel producers, even those that still reported net income, mills are more eager than ever to increase revenue, so it is still very likely that a price increase—whether official or quiet—will hit the US domestic rebar market sooner rather than later.