US rebar market shows mixed trends

Wednesday, 21 June 2017 21:23:16 (GMT+3)   |   San Diego
       

Although the US domestic rebar market is still “anxiously awaiting” the results of the Section 232 investigation, the market is showing mixed trends ahead of the results. Some rebar mills are quietly raising prices in certain regions, including CMC’s $1.25 cwt. ($25/nt or $28/mt) increase at its Arizona mill, and Gerdau’s $1.00 cwt. ($20/nt or $22/mt) increase at its Texas facility. But sources tell SteelOrbis that demand is lagging in other US regions, including pockets of the South and West Coast, giving rebar buyers leverage to negotiate deals.
 
Meanwhile, most US mills in the Midwest and elsewhere are “holding tight” to spot prices, sources say, leaving the general US domestic rebar spot range level at $30.75-$32.25 cwt. ($615-$645/nt or $678-$711/mt) ex-mill, with certain large distributors still able to negotiate downward, although that trend is not expected to last. As soon as the Section 232 results are announced, US domestic mills are poised to raise rebar prices almost immediately.
 
The amount of the projected increase is still up for debate, but sources tell SteelOrbis they are preparing for a “sizeable jump” just in case. Some sources predict the increase will also take into account the increase that was “tabled” last month after the final results in the AD/CVD investigation into rebar from Turkey and Japan. While some sources initially attributed the lack of response as “not wanting to jump the gun” before the Section 232 results were released, others contend that US rebar mills purposely left prices stable in May in order to keep Q2 earnings low enough to support the argument that imports are harming their bottom lines—a key point of evidence in the Section 232 investigation.

Similar articles

Domestic rebar prices in Taiwan - week 13, 2024

29 Mar | Longs and Billet

Import longs offers in Romania now attractive, local prices stable

28 Mar | Longs and Billet

Turkish domestic dollar-based rebar spot prices soften

28 Mar | Longs and Billet

Major steel and raw material futures prices in China - March 28, 2024

28 Mar | Longs and Billet

Rebar consumption in Mexico decreases 3.1 percent in January

27 Mar | Steel News

US rebar prices mostly stable with occasional deals

27 Mar | Longs and Billet

Downtrend reverses in Pakistan’s import scrap segment

27 Mar | Scrap & Raw Materials

Turkey seeks to raise rebar export offers, demand mostly seen locally

27 Mar | Longs and Billet

Iskenderun-based Turkish mill increases its rebar price      

27 Mar | Longs and Billet

Major steel and raw material futures prices in China - March 27, 2024

27 Mar | Longs and Billet