While last week's round of rebar base price decreases from major US domestic mills was an effort to "level the playing field," it also served as a pre-emptive response to the $20-$25/lt drop in shredded scrap prices this month. Scrap prices were not officially settled at the time of the rebar price decrease announcements, but in Nucor's letter at least, the company made it clear that the new price would apply for the remainder of the month, regardless of what happened with scrap. As such, the new spot price range of $33.00-$34.00 cwt. ($728-$750/mt or $660-$680/nt) ex-mill--reflecting the $1.00 cwt. decrease--should hold until June, when scrap prices are expected by some to reverse course and rise. In that case, mills will have no problem pushing through a full-scrap increase, considering that demand for rebar is still relatively strong.
Interest in import rebar offers has also been lively in the last week, as the US domestic spot range--widely believed to be the "bottom"--is still dollars ahead of Turkish and Mexican offerings, which have not seemed to hit their own bottom yet. Turkish import rebar prices dropped slightly again this week, by about $0.25 cwt. ($5.50/mt or $5/nt). However, traders say that the new offer range of $29.00-$30.00 cwt. ($639-$661/mt or $580-$600/nt) DDP loaded truck in US Gulf ports has inspired a mild swell in booking activity in the last few days, as the offers are not expected to last long. Mexican rebar offers have also dropped by about $0.25 cwt. into the range of $29.00-$30.00 cwt. DDP loaded truck delivered to US border states, but are now expected to remain stable for the near-term.