Are US rebar mills itching to push prices higher?

Thursday, 31 October 2013 00:44:36 (GMT+3)   |   San Diego
       

After a successful and swift price increase rolled out a couple weeks ago by US domestic rebar mills, many expect another increase--likely higher than the recent $0.50 cwt. ($11/mt or $10/nt)--soon, perhaps even by next week.  Originally, mills were slated to wait until the ITC ruling on import rebar from Turkey and Mexico, but because that ruling was delayed to November after the government shutdown, sources tell SteelOrbis that mills are not willing to wait that long.  Considering mill efforts to divorce their price moves from scrap trends, it would not be out of place for them to raise prices before scrap settles next month.  As for an actual increase amount, at least $1.00 cwt. ($22/mt or $20/nt) is probable.  For now, spot prices are still in the range of $32.00-$33.00 cwt. ($705-$727/mt or $640-$660/nt) ex-mill, but in preparation for the uptrend, sources say mills are not willing to book many orders at the lower end of the range.

As for imports, offer prices from disputed sources Turkey and Mexico are still available this week, with Mexican offers even on an uptrend--prices are now in the range of $30.00-$31.00 cwt. ($661-$683/mt or $600-$620/nt) DDP loaded truck delivered to US border states, up $0.50 cwt. since last week.  Some further destination, in fact, are even being booked at $32.00 cwt.  Turkish offers, meanwhile, have taken a breather after increasing last week, with offers still ranging from $30.00-$31.00 cwt. DDP loaded truck in US Gulf ports.  Traders report decent interest in product from both sources, despite the looming ITC ruling.  As for other sources, offers from Korea are still in the range of $32.00-$33.00 cwt. ($705-$727/mt or $640-$660/nt) DDP loaded truck in West Coast ports--but hints of a slight downtrend in demand on the West Coast could affect prices in the near term.


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