In a letter to customers today, Gerdau Long Steel North America announced that it will increase rebar transaction prices by $1.00 cwt. ($20/nt or $22/mt), effective with new orders as of September 26. Gerdau said “input costs to produce steel have risen significantly on a global basis this year,” and it will continue to monitor inputs costs on an “international basis.”
Gerdau’s letter follows a similar letter from Commercial Metals Co. (CMC), which also increased rebar prices by $1.00 cwt., effective with new orders as of September 25. CMC also cited “the cost of consumable inputs used in steel manufacturing (electrodes, alloys, etc.),” which has “escalated dramatically.”
Nucor, which is usually the first US domestic rebar mills to announce price increases, is expected to release a similar letter to customers soon.
The most recently reported US domestic rebar spot prices were in the range of $33.25-$34.75 cwt. ($665-$695/nt or $733-$766/mt) ex-mill. If this week’s price increase is fully absorbed into the market, spot prices will range from $34.25-$35.75 cwt. ($685-$715/nt or $755-$788/mt) ex-mill.