Although the general price trend for rebar in the US is soft, sources tell SteelOrbis that Nucor has issued a quiet, region-specific price increase. Effective December 1 for most customers (and about a week later for select large distributors), rebar prices at Nucor’s Midwest locations are lifting by $1.00 cwt. ($20/nt or $22/mt). Limiting the increase to the Midwest is reportedly tied to the delayed influence of imports on the region, not necessarily to an increase in demand or supply restrictions, and there isn’t much expectation for push-back from customers. On the other hand, sources say most of the distributors that were granted an extension will be stocking up before the effective date, which means the increase has so far not affected the overall spot range of $34.00-$35.00 cwt. ($680-$700/nt or $750-$772/mt) ex-mill.
Traders, meanwhile, are confident that US rebar customers in the Midwest who are not bound by Buy American restrictions will either buy elsewhere (although Nucor has the most significant presence in the region) or take advantage of still-dropping import offers. Price for future arrivals are still in the range of $26.50-$27.50 cwt. ($530-$550/nt or $584-$606/mt) DDP loaded truck in US Gulf ports despite yet another dip in offers on the CFR level this week. Additionally, positions are still available at the port, and will be even cheaper in January at sub-$28.50 cwt. ($570/nt or $628/mt) prices delivered to many Midwest areas.