The same market factors that eroded the top end of the US domestic rebar spot range last week are still in play—flexible import offers and low domestic scrap prices with expectations for further downticks in August—and have now dragged down both ends of the spot range.
Sources tell SteelOrbis that there is “no chance” mills can push offers above the $30.00 cwt. ($620/nt or $662/mt) ex-mill level, even for small-tonnage orders—last week, the high end of the range was $0.50 cwt. ($10/nt or $11/mt) higher, and sources say transactions will become more distant from even the $30.00 cwt. in the near term.
As for the low end of the rebar spot range, sources have heard deals for as low as $26.50 cwt. ($530/nt or $584/mt) ex-mill, but most of the lower-end transactions have been closer to $27.00 cwt. ($540/nt or $595/mt) ex-mill. As with last week, sources don’t believe an official mill price decrease is on the horizon, but if market conditions don’t improve through August, that sentiment could change.