Gerdau’s last-minute $1.00 cwt. ($20/nt or $22/mt) rebar price increase last week has not gone over well, sources tell SteelOrbis, primarily due to plunging import offers and weak predictions for scrap prices this month. The same factors are affecting Nucor’s increase on 20-foot rebar (also for $1.00 cwt.), which had even less chance of succeeding considering 20-foot lengths are typically favored in the import market.
Sources report that mills are not pushing for their latest increases, and even offering deals to customers with large orders. As such, the spot range for US domestic rebar has dropped by $0.50 cwt. ($10/nt or $11/mt) on both ends this week, down to $28.50-$33.00 cwt. ($570-$660/nt or $628-$728/mt) ex-mill. Sources say spot prices have “plenty of room” to drop further, at least until import offers stop falling.
This week, import offers dropped by $1.00 cwt. to $21.00-$23.00 cwt. ($420-$460/nt or $463-$507/mt) DDP loaded truck in US Gulf ports, and traders tell SteelOrbis that offers are not close to hitting bottom. Turkish mills raised prices “too much too soon” but they are not decreasing offers quite as fast.