After Nucor announced a $15/nt ($0.75 cwt. or $17/mt) decrease in rebar transaction prices on Wednesday to follow the scrap downtrend, Gerdau Long Steel North America sent out a letter to customers Thursday, aligning their prices to competing mills. In addition to rescinding the $10/net ($0.50 cwt. or $11/mt) price increase announced on April 5, Gerdau also implemented a $15/net ton rebar transaction price decrease, effective immediately.
In the letter, Gerdau said the company was "disappointed with recent price change announced in the marketplace, which we don't believe align with current market conditions." However, the company intends to maintain their "competitive position in the market," and thus apparently had no choice but to follow Nucor's price cut.