Restricted output from US rebar mills has given them leverage to push for prices above the general spot range.
While demand in the US domestic rebar market has not improved above currently decent levels, mills' effort to restrict rebar supply by keeping capacity levels low has allowed them to negotiate their rebar spot prices upward. In the last week, some spot prices have been heard in the range of $35.00-$36.00 cwt. ($772-$794/mt or $700-$720/nt) ex-mill, reflecting a $1.00 cwt. ($22/mt or $20/nt) increase from previously reported prices. The increase is by no means official (monthly mill RMS announcements have not yet been released), but sources tell SteelOrbis that mills will probably keep rebar transaction prices level in response to the neutral scrap move this month, while continuing to unofficially firm up spot prices.
Import offer prices, on the other hand, have finally started to slip after weeks of pressure. While Turkish mills attribute the downtrend in their export rebar offers to a sudden strengthening of the US dollar against the Turkish lira, it is very likely that the decision is also attributed to weeks of US buyers showing little to no interest in Turkish rebar prices that were recently even higher than US domestic spot prices. As such, Turkish rebar offers in the US are now in the range of $34.50-$35.50 cwt. ($761-$783/mt or $690-$710/nt) DDP loaded truck in US Gulf ports, reflecting a $0.50 cwt. ($11/mt or $10/nt) decrease from last week. The trend reversal between US and Turkish prices could spur some interest in overseas product, but traders tell SteelOrbis that it's probably too early to tell.
South of the border, Mexican mills continue to monitor the US domestic rebar market, and while they will not likely raise offers along with US mills, they might take the opportunity to cut quiet deals as an incentive to lure US buyers back to their market, which has been quiet as of late. For now, however, prices are still in the range of $34.00-$35.00 cwt. ($750-$772/mt or $680-$700/nt) DDP loaded truck delivered to US border states.