Considering the most recent $2.00 cwt. ($44/mt or $40/nt) price increase announced in mid-December absorbed “almost instantly” and US domestic scrap prices are poised to surge upward once again this month, sources tell SteelOrbis that “all signs are pointing” to yet another US domestic rebar price increase. Sources say the announcement could come as soon as this Friday, even if scrap prices haven’t settled yet. But with an expectation of an $80-$120/ton increase in scrap prices, the only question is just how far US rebar mills will push prices upward.
Most sources say a $2.00-$2.50 cwt. ($44-$55/mt or $40-$50/nt) rebar increase is a “reasonable prediction, while some sources wonder if mills might “just go for it” and announce a much steeper increase. Whatever the increase turns out to be, sources expect little resistance from buyers, despite reports that demand is stronger in the Midwest compared to the East coast.
For now, US domestic rebar spot prices have not moved from their pre-holiday range, although the range will most likely move upward by next week. Current spot prices in the Midwest are still trending at $38.00-$39.50 cwt. ($838-$871/mt or $760-$790/nt) ex-mill in the Midwest, and $36.50-$38.00 cwt. ($805-$838/mt or $730-$760/nt) ex-mill on the East coast.