As SteelOrbis predicted last week, US domestic rebar mills announced another price increase this week. The new, effective-immediately increase of $1.25 cwt. ($25/nt or $28/mt) has now lifted US domestic rebar spot prices into the range of $33.25-$34.75 cwt. ($665-$695/nt or $733-$766/mt) ex-mill.
With steady demand and rising scrap prices, sources say it’s “no surprise” the increase was immediately absorbed into the market, although competition from an expected influx of imports in the coming months could hinder US mills’ attempt to keep dealmaking at bay. After the recent announcement that the Section 232 investigation will be delayed indefinitely, many US rebar buyers have returned to the import market. Once current orders hit US ports, the price gap in import material versus domestic product—currently around $6.00 cwt. ($118/nt or $130/mt)—could loosen the tight grip US mills are maintaining on spot prices.