Has the latest price increase already been absorbed into the US rebar market?

Thursday, 05 December 2013 01:23:40 (GMT+3)   |   San Diego

Considering that Nucor and SDI's $0.50 cwt. ($10/nt or $11/mt) price increase announcement this week marked a belated "catch-up" to Gerdau's $1.00 cwt. ($20/nt or $22/mt) increase last month, the general spot price range of $33.00-$34.00 cwt. ($660-$680/nt or $728-$750/mt) ex-mill is not expected to move upward.  However, because the lower end of the range accounted for the discrepancy between Nucor/SDI and Gerdau's asking prices, sources tell SteelOrbis that deals below the $33.50 cwt. ($670/nt or $739/mt) mark will likely disappear.  Now that major mills are on the same page, it is expected that Gerdau will "up the ante" once more and announce another price increase soon to reflect continuously strong demand levels and uptrending scrap prices.  Some sources predict an increase in the $1.00 cwt. range, but anything that is announced will no doubt be immediately absorbed into the market.

As for imports, offer prices are stable although demand is shaky.  Fewer and fewer buyers are willing to take the risk ordering Turkish rebar that could arrive after the US DOC's preliminary AD/CVD ruling, and even though traders report Turkish mills' willingness to negotiate, demand has almost entirely vanished.  Mexican interest, meanwhile, is just slightly stronger in light of shorter lead times, but it appears that most US rebar buyers are preferring to stick with domestics even though US spots are on an uptrend.  But for those brave enough to seek out cheaper imports, prices for both Turkish and Mexican rebar remain in the range of $30.00-$31.00 cwt. ($661-$683/mt or $600-$620/nt) DDP loaded truck, in US Gulf ports and delivered to US border states, respectively.


Similar articles

US rebar market waits for import price bottom

27 Feb | Longs and Billet

US rebar mills rescind increase as import prices fall

06 Feb | Longs and Billet

Nucor rescinds latest increase, cites import surge

04 Feb | Longs and Billet

US rebar market awaits further price increases as imports sources rally

09 Jan | Longs and Billet

US rebar market firms further with Gerdau’s resolve

14 Nov | Longs and Billet

AIIS: Trade case against rebar from Turkey and Mexico won’t solve problem

06 Sep | Steel News

US mills file AD/CVD petitions against rebar from Turkey and Mexico

05 Sep | Steel News

No word from US rebar mills regarding prices

29 Aug | Longs and Billet

How will US rebar mills react to moderate scrap uptrend?

11 Jul | Longs and Billet

How will July scrap affect the US rebar market?

27 Jun | Longs and Billet

Marketplace Offers

Deformed Bar
Diameter:  8 - 50 mm
SIDIROSTAL SA
Deformed Bar
Diameter:  8 - 40 mm
CONARES METAL SUPPLY
Deformed Bar
Diameter:  6 - 32 mm
ES ISO 6935-2 2019 B500BWR , ASTM A615 GR 60
YOTTA TRADING