Many in the US domestic rebar market say the modest increase in US scrap prices this month “is nowhere close to enough” to justify a rebar price increase, and yet some sources contend that if scrap prices rise again in November, US rebar mills could finally make a move after months of pricing policy silence.
Sources say mills have been “looking for a reason” to raise prices after spot market prices slowly eroded from the levels seen earlier this year in the Section 232 aftermath. But scrap prices have vacillated since then, and while import prices increased, tonnage levels did not drop as much as anticipated. As such, US rebar mills have not had the leverage they needed to increase prices again.
And while trends within the US flats and longs market are typically unrelated, Nucor’s announcement today of a $2.00 cwt. ($40/nt or $44/mt) price increase on flat steel products has some in the rebar market wondering if the company will extend their pricing confidence to long products. Until then, US domestic rebar spot prices are still in the wide range of $36.00-$39.00 cwt. ($720-$780/nt or $794-$960/mt) ex-mill, with deals as low as $35.00 cwt. ($700/nt or $772/mt) ex-mill for the largest customers.