While ex-mill prices within the US domestic rebar market have remained steady week-on-week, sources tell SteelOrbis that deals have emerged at the distributor level, with many distributors cutting prices to maintain order flow in a slower-demand environment. Additionally, seasonal demand softening has, along with lower fuel prices, helped to drop freight costs—giving distributors more “wiggle room” in their margins to be competitive with prices.
Sources also tell SteelOrbis that the impact of imports on domestic prices is dwindling, as many distributors are “done with 2018” and looking ahead to 2019 arrivals. Still, rumors persist for a January 1-effective US rebar mill price increase, which could come in anywhere from $1.00-$1.50 cwt. ($20-$30/nt or $22-$33/mt). Until then, US domestic rebar spot prices are expected to remain in the range of $36.00-$39.00 cwt. ($720-$780/nt or $794-$960/mt) ex-mill, with deals as low as $35.00 cwt. ($700/nt or $772/mt) ex-mill or slightly lower, depending on the order size.