After a relatively surprise price increase announcement for US domestic wire rod last week, many in the US longs market are wondering if rebar prices will follow suit. Despite strong demand, spot prices for US domestic rebar have languished in the range of $34.25-$35.25 cwt. ($685-$705/nt or $755-$777/mt) ex-mill for several months, and sources tell SteelOrbis that the market is clamoring for an uptrend. An increase similar to wire rod’s $0.75 cwt. ($15/nt or $17/mt) or slightly less would not find much resistance in the market, sources say, but anything more would reportedly “stall out.”
Uptrending import offers would contribute to the likely success of an increase in the US rebar market, although the upticks in Turkish rebar offers have been minimal so far. A slight bump in prices on the CFR level has not yet translated into sales priced in the US, as traders say they want to see how sustainable the trend is (and how far up prices might go) before adjusting the current offer range of $28.50-$29.50 cwt. ($570-$590/nt or $628-$650/mt) DDP loaded truck in US Gulf ports.