Although many in the US domestic rebar market predicted last week that a “hefty” mill price increase was on the way, Nucor announced a modest $1.25 cwt. ($25/nt or $28/mt) price increase late last Wednesday, followed Thursday by Gerdau Long Steel North America and Steel Dynamics, Inc. As expected, the new increase was immediately absorbed into the market, with US domestic rebar spot prices now ranging from $32.50-$34.00 cwt. ($650-$680/nt or $717-$750/mt) ex-mill.
However, sources have speculated on the reasoning behind the “surprisingly low” increase amount, as many expected an increase of around $2.00-$2.50 cwt. ($40-$50/nt or $44-$55/mt). Some sources think mills “caught wind” of a possible sideways trend for US domestic scrap prices in April, while others think mills are opting to break a larger increase into two portions, and another $1.00-$1.25 cwt. ($20-$25/nt or $22-$28/mt) rebar price increase could be announced soon.
For now, sources tell SteelOrbis that US rebar mills are more rigid when it comes to dealmaking, and deals underneath the current spot range are “very difficult” to come by.