After dropping slightly over a week ago, US domestic rebar spot prices have remained in the range of $32.50-$33.50 cwt. ($717-$739/mt or $650-$670/nt) ex-mill this week. However, the neutral trend is less a sign of steadiness in the market than a "time out" before June scrap prices settle, according to sources. As a result, purchasing activity has quieted somewhat while many buyers wait to see if US rebar prices have hit bottom, even though demand has not seen any sort of major drop-off. If rumors of a scrap price decrease for June come to fruition, sources expect a flurry of orders to restock inventories that have dipped purposely low.
As for imports, Mexican and Turkish offer prices have also stabilized this week after a minor drop, with rebar from both sources still ranging between $28.75-$29.75 cwt. ($634-$656/mt or $575-$595/nt), DDP loaded truck in US Gulf ports and DDP loaded truck delivered to US border states, respectively. According to traders, there is still decent inquiry activity for both offshore and south of the border product, as US buyers believe that even if US domestic prices fall next month, imports bought now and arriving in the next month or two will still be cheaper, and they'd rather have a firm grasp on future expenses than be subject to the whims of the US scrap market.