After a swift absorption of the early-August $1.25 cwt. ($25/nt or $28/mt) price increase into the US domestic rebar market, sources tell SteelOrbis another price increase is “very likely” on the way. Bolstered by steady demand and uptrending scrap prices, another increase would find little resistance, sources say, adding that the increase amount could be as much as $1.50 cwt. ($30/nt or $33/mt).
Until then, sources say mills are keeping an eye on rising import offers, as well as import availability at US ports. With few rebar shipments arriving so far this month, mills are reportedly looking to take advantage of the low position supply, which typically gives buyers an alternative to both domestic product and high-tonnage requirements for direct import orders.
As such, the current US domestic rebar spot price level, while steady this week at $32.00-$33.50 cwt. ($640-$670/nt or $705-$739/mt) ex-mill, “won’t last long,” according to sources.