Nucor announced today that they are increasing transaction prices for rebars by $15 /nt ($0.75 cwt. or $16.53 /mt). The announcement came after many months of implementing stable pricing strategy.
However, even
Nucor was not immune to upward pricing pressure. Earlier this week, Tamco Steel in Los Angeles took the initiative to increase their prices, citing excellent order books and rising import pricing. Tamco is only a regional player, and it is unusual for a small mill to go up with prices first.
As always, towards the middle of the month, the
rebar industry speculates where the direction of
Nucor's price announcement will go. Some believed we might see a price increase this time, but even
Nucor's own sales people often do not know this ahead of time.
In the end
Nucor executives decided a modest price increase is the way to go.
Effective May 1, domestic prices will move to a new range of from $25.50 cwt. to $26.00 cwt. ($562 /mt to $573 /mt or $510 /nt to $520 /nt) FOB mill. Extras change from one domestic producer to another and vary depending on bar size, grade, and length. The smallest
rebar size, #3 (9.5 mm) fetches the highest extra.
In general, favorable domestic market conditions persist, with strong demand and signs that
scrap is starting to rise again.
The import pricing trend is also strongly up, though prices have not changed since last week.
Turkey's asking prices have increased, but offers from
Russia,
Taiwan,
Japan and
Malaysia are getting more competitive, giving those countries a larger share in the US import market.
Turkey's domestic market is cooling off, and
scrap prices appear to have peaked in Black Sea region. The upward momentum is certainly slowing, but still continuing.
Import
rebar offering prices remain at the same range as last week, from $23.50 cwt. to $24.50 cwt. ($518 /mt to $540 /mt or $470 /nt to $490 /nt) FOB loaded truck in US Gulf ports.