While one mill jumped the gun with a $30/nt increase last week, others followed with a more "realistic" $20/nt increase days later.
Despite tepid demand in the US domestic rebar market, mills are still determined to lift spot prices from lagging levels--however, different mills have different expectations on just how much of an increase the market can absorb. In an unusual move, Gerdau Long Steel North America released a price announcement before other mills, lifting transaction prices by $1.50 cwt. ($33/mt or $30/nt) for July shipments. Many in the US rebar market scoffed at such an increase, which accounted for almost twice the increase in shredded scrap prices this month.
So it was not much of a surprise when days later, both Nucor and Steel Dynamics Inc. announced their own price increases--at $1.00 cwt. ($22/mt or $20/nt). Source tell SteelOrbis that this is a more "realistic" price idea, but even so, it is still too early to tell how much of either increase each mill will be able to push through. However, most agree that it is very unlikely that Gerdau will see anywhere near the full $1.50 cwt. For now, spot prices are still hovering in the range of $33.00-$34.00 cwt. ($728-$750/mt or $660-$680/nt) ex-mill.
Turkish import prices have also not changed in the last week, as the recent uptrend in rebar prices finally hit its peak. Traders tell SteelOrbis that Turkish rebar prices are not rigid, and mills are inviting alternative offers--as long as they're not too low. Nevertheless, demand for rebar imports in the US is low at the moment, and many expect import offers to drop in the next week or so. Until then, Turkish rebar prices still match US domestic spot prices, at $33.00-$34.00 cwt. ($728-$750/mt or $660-$680/nt) DDP loaded truck in US Gulf ports.
Import activity from south of the border is similarly quiet--after increasing by approximately $1.25 ($28/mt or $25/nt) last week, the margin between Mexican and US prices is slim, and sluggish US demand for rebar has not spurred much interest in Mexican offers. For now, Mexican prices remain in the range of $33.50-$34.00 cwt. ($739-$750/mt or $670-$680/nt) DDP loaded truck delivered to US border states.