US rebar market awaits domestic mills' July pricing move

Friday, 06 June 2008 02:37:21 (GMT+3)   |  
       

US rebar distributors in the Midwest and West Coast say that inventories are growing leaner from the lack of imports, and that they will likely have to push up their prices as a result.

With only scattered imports from Japan and Mexico arriving this summer, the situation on the ground will grow tighter in the next couple months, and distributors are expected to push their prices up in line with any domestic price increases that come.

In the Gulf, traders say that there is still a decent amount of steel on the ground, but that no one is in a hurry to sell at the current market level for import rebar in the US, which is still at a range of $48.00 cwt. to $49.00 cwt. ($1,058 /mt to $1,080 /mt or $960 /nt to $980 /nt) FOB loaded truck in US Gulf ports. Traders expect the accepted price level to rise along with the domestic mills' prices this summer and are waiting until prices reach their maximum before they start offering again.

Mexican offers are still at a range of $53.00 cwt. to $54.00 cwt. ($1,168 /mt to $1,191 /mt or $1,060 /nt to $1,080 /nt) delivered to California, and $1.00 cwt. to $2.00 cwt. less in the Gulf. Mexico is expected expected to remain in the market for a while as there are no other significant import rebar sources at present. There are still no offers being entertained by Turkey, though traders do reportedly have some material ordered months ago that is on its way to the US, which they will have to sell at no less than $51.00 cwt. FOB loaded truck in the Gulf.

Domestically, as we reported last week, the rebar pricing trend is still slightly up despite indications that shredded scrap prices may come down in June. With domestic material still significantly under the import price, at a range of $46.70 cwt. to $47.25 cwt. ($1,030 /mt to $1,042 /mt or $934 /nt to $945 /nt) ex-mill, domestic mills still have room to raise their numbers closer to the international levels. However, with shredded scrap prices expected to come down by as much as $30 /long ton in the Midwest this month, rebar producers will likely only raise their transaction prices by a small amount.


Similar articles

Downtrend reverses in Pakistan’s import scrap segment

27 Mar | Scrap & Raw Materials

Pakistani buyers delay new scrap bookings as mood in finished steel segment falters

06 Mar | Scrap & Raw Materials

Turkey’s deep sea scrap market set to show clearer trend next week

01 Feb | Scrap & Raw Materials

Import scrap prices in Pakistan expected to rise further, demand not supportive

10 Jan | Scrap & Raw Materials

Taiwan’s import scrap market softens further despite positive rebar sales situation

05 Jan | Scrap & Raw Materials

Import scrap trade remains muted in Pakistan, prices mainly unchanged

03 Jan | Scrap & Raw Materials

Taiwan’s import scrap market softens as rebar trading slows down

29 Dec | Scrap & Raw Materials

Australia’s Green Steel of WA to build green steel recycling mill

28 Dec | Steel News

Import scrap activity in Pakistan muted due to European sellers’ absence, Red Sea crisis

27 Dec | Scrap & Raw Materials

SteelOrbis year-end review: Turkish steel industry experiences an even more difficult year in 2023

25 Dec | Steel News