While US mills officially kept rebar prices stable for May, spot prices have already softened over the week in the face of tepid demand.
Construction activity in the US has not exactly experienced the "spring surge" that many in the steel industry hoped for, and sluggish demand levels have put increasing pressure on US domestic rebar prices lately. There was some speculation last week that domestic mills might drop official asking prices in response to demand (considering shredded scrap pricing moved sideways this month), but it seems as if mills are holding tight to their prices-on paper, at least.
Actual transactions, on the other hand, have softened in the last week. Already, most spot prices are now approximately $0.50 cwt. ($11/mt or $10/nt) lower, bringing average prices into the range of $35.50-$36.50 cwt. ($783-$805/mt or $710-$730/nt) ex-mill. Additionally, prices even under the lower end of the range have been reported, but only for certain customers. Sources tell SteelOrbis that domestic mills' flexibility in pricing is more a reaction to distributors undercutting mill prices than competition from other mills.
Import rebar offers are also slipping, but not quite to levels that would gain much acceptance in the US. Turkish rebar prices in the US have also dropped about $0.50 cwt., bringing offers into the range of $32.00-$33.00 cwt. ($705-$728/mt or $640-$660/nt) duty paid FOB loaded truck in US Gulf ports. Sources tell SteelOrbis that Turkish rebar mills believe prices have hit bottom, so it is unclear at this point what direction prices will take next week.
Mexican rebar mills, ever-vigilant in following US rebar price moves, have also lowered their offers by $0.50 cwt., even though the US drop was not "official." Mexican rebar offers to the US are now in the range of $32.50-$33.50 cwt. ($717-$739/mt or $650-$670/nt) duty paid FOB delivered to US border states. However, as with Turkish offers, US rebar buyers are not exactly jumping at import offers for now.
