Now that the scrap market in the US has found its footing and arriving rebar imports are starting to slow down, many in the US domestic rebar market are looking forward to a possible increase in prices, either officially in the form of a mill letter, or unofficially as mills firm prices on a case-by-case basis. However, mills might find resistance to higher prices due to another market factor: inventory levels. Sources tell SteelOrbis that end-use activity isn’t picking up as fast as expected, leaving inventory levels plumper than expected. Even so, sources say that if mills are determined to raise prices, relatively soft demand will not be much of a deterrent. Until then, spot prices are unchanged this week in the range of $31.50-$32.50 cwt. ($630-$650/nt or $694-$717/mt) ex-mill.
Traders also tell SteelOrbis that their customers are resistant to higher prices, but they can no longer justify keeping prices low in the face of rising future offers from Turkey and a glut of positions at the port booked for higher prices months ago. Therefore, future order prices for Turkish rebar are now available in the US for $22.00-$23.00 cwt. ($440-$460/nt or $485-$508/mt) DDP loaded truck in US Gulf ports, with a strong indication that the range will continue to rise.