As predicted, the $1.25 cwt. ($25/nt or $28/mt) price increase announced by US domestic rebar mills last week was swiftly absorbed into the market, with spot prices now ranging from $32.00-$33.50 cwt. ($640-$670/nt or $705-$739/mt) ex-mill. Sources tell SteelOrbis that the moderate price increase might have be a “test run” to see how the market would react, and because mills experienced virtually no pushback to the increase, some in the market are speculating that another price increase could be on the way in the near future.
With scrap prices rising and import offers trending up as well, sources say the “conditions are ideal” for another moderate rebar price increase, possibly in early September. As for potential deals for large customers, sources say deals are currently “not easy to come by” but “not impossible to get” either.