US rebar market – Import prices still on the rise

Import rebar offers in the US have reached a new record price level, rising $0.50 cwt. ($10 /nt or $11 /mt) in the past week. Import rebar offers now range from $29.50 cwt. to $30.50 cwt. ($650 /mt to $672 /mt or $590 /nt to $610 /nt) duty paid, FOB loaded truck, in US Gulf ports. Similar prices are valid for West Coast discharge from Asian sources, primarily from Taiwan. The pricing trend for import rebar is still strongly up. The foreign rebar markets are still soaring, as raw material costs are rising and building activity is strengthening worldwide. Construction activity and rebar prices are strongest in the Middle East, followed by Europe, and then Asia. Large rebar distributors in the US, knowing that holes will develop in their inventories as demand continues to improve, are trying to buy all the imports they can at under $30 cwt. Meanwhile, smaller distributors are holding back on purchasing in the hope that prices may come down. The smaller distributors, not having enough resources to gamble on the market, would rather fall short on their inventories and mark up prices on existing inventories if the market strength continues. When their supplies start to run low, they will probably end up buying from the master distributors. The US is one of the weaker markets for rebar when compared to the foreign markets, but the market is still relatively strong compared to how it was a couple of months ago. Scrap prices are still strong, and rebar demand is improving. Non-residential construction activity is still robust, and there is a lot of concrete being poured, largely due to the Highway Transportation bill, passed early last year. Also, as soon as the snow clears in the North, rebar in the US should kick into a higher gear. Market players expect to see more price increases from the domestic rebar mills as long as the scrap market maintains its strength. For now, domestic rebar prices continue to range from $28.90 cwt. to $29.40 cwt. ($637 /mt to $648 /mt or $578 /nt to $588 /nt) ex-mill.