Because US rebar prices were on a downtrend even before scrap prices dropped $50-$60/lt this month, it was a bit of a surprise that US rebar mills only dropped transaction prices by $1.50 cwt. ($33/mt or $30/nt). Many in the industry felt it was not enough, and expected spot prices to fall further--already, they have decreased by $0.75 cwt. ($17/mt or $15/nt) in the last week, bringing the general spot range down to $33.00-$34.00 cwt. ($728-$750/mt or $660-$680/nt) ex-mill. And according to sources, low demand for rebar in the US and early predictions for another scrap downtrend next month all but guarantee spot prices will slip further in the coming weeks.
Import rebar offer prices, on the other hand, have remained stable this week, but traders indicate that it won't be for long. Turkish rebar is still in the range of $30.50-$31.50 cwt. ($672-$694/mt or $610-$630/nt) DDP loaded truck in US Gulf ports, although sources say the market is close to dropping under $30.00 cwt. ($661/mt or $600/nt). Meanwhile, Mexican mills are reportedly open to negotiation with their general price range of $30.50-$31.50 cwt. DDP loaded truck delivered to US border states--traders tell SteelOrbis that if they push hard enough, they are able to get deals underneath the range. However, despite the softness in the import market, demand is extremely low and traders are only responding to scattered "crazy-low" prices from foreign mills.