Now that shredded scrap prices in the Midwest have settled at $10-$20/ton less than last month, sources within the US domestic rebar market have expressed disappointment in the months-long downtrend, especially since purchasing activity has been on the slow side recently. Mills are reportedly cutting deals for large customers beneath the $27.00-$29.00 cwt. ($540-$600/nt or $595-$640/mt) ex-mill spot range, but trying to maintain firmness otherwise.
Part of the slowness in domestic buys can be attributed to an uptick in import inquiries—after an initial “panic” at the recently-filed trade case against Turkey, Japan and Taiwan, sources tell SteelOrbis that import buys have resumed at slightly-lower prices. There is also still ample position availability at the ports, giving US buyers an alternative short-lead-time/small-tonnage alternative to domestic purchases.
Still, some sources are not ruling out a US domestic rebar increase in the near-future—once scrap prices level out or see even the slightest bump, mills are expected to jump on the opportunity for a “nice little margin boost” for their end-year financial results.