US rebar market - Will Nucor raise prices again?

Market leader Nucor Steel Corp. will announce June prices soon, and some steel professionals believe that another increase in the base price and the Raw Material Surcharge (RMS) for rebar shipments is long due. With an estimated $10 /nt ($11 /mt or $0.50 cwt.) increase in the RMS, due to price hikes in the scrap market, a $15 /nt ($16.50 /mt or $0.75 cwt.) increase in June transaction prices would not be unreasonable. Potentially, the increase could be even higher since demand is good and the housing market is still strong. Domestic mills are busy supplying rebars to government projects unleashed by the new highway bill, and the milder-than-expected winter has added to the US' ferocious appetite for rebars in 2006 as well. Imports are expected to exceed 2 million metric tons this year, possibly pushing 2.5 million mt after all is said and done. Despite record levels of imported rebars, there seems to be no end to distributors' demand. Domestic rebar offers for May delivery range 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. #3's (9.5 mm) fetch the highest extra. On the whole, import prices have not changed since last week, though the pricing trend is up because of the strong demand in the US. Also, asking prices from Turkish mills are still on the rise. This week, import rebar offers range from $24.75 cwt. to $25.75 cwt. ($546 /mt to $568 /mt or $495 /nt to $515 /nt) FOB, loaded truck, in US Gulf ports.