US domestic scrap prices dropped this month less substantially than initially expected, which has led US domestic rebar mills to eye their next price increase, according to sources. Early predictions for March scrap prices are already looking up, and import rebar prices are also on the rise. Combined with strong demand in the US, sources say these factors are adding up to an “almost guaranteed” rebar price increase announcement in the coming weeks.
Already, distributors are reporting a lack of flexibility at the mills. Offers of large tonnage buys in exchange for lower prices are being declined, and according to some distributor sources, mills have told them the reason is because higher prices are around the corner. How much mills will raise prices and when an announcement is expected are questions still up for debate, but until then, spot prices for US domestic rebar are still in the range of $30.75-$32.75 cwt. ($615-$655/nt or $678-$722/mt) ex-mill, with fewer transactions being reported at the lower end of the range.