Despite US domestic scrap prices dropping slightly this month, US domestic rebar mills are reportedly “undeterred” in their goal for ever-higher prices, which sources say is aimed at getting even the lowest prices for large distributors above the $40.00 cwt. ($800/nt or $882/mt) ex-mill mark. For now, US domestic rebar spot prices are stable at of $41.50-$42.50 cwt. ($830-$850/nt or $915-$937/mt) ex-mill for small to medium-sized buyers, and around $37.00-$38.00 cwt. ($740-$760/nt or $816-$838/mt) ex-mill for large distributors—both ranges unchanged in the last week.
However, other sources are skeptical about how long such a strong price uptrend can last. According to media reports, the US Federal Reserve’s April “Beige Book” included reports from various US manufacturers and end-users struggling under the dual pressures of steel import uncertainty and increasing domestic steel prices. If major manufacturing or construction projects are canceled due to high steel prices, the drop-off in demand could have a “severely adverse” affect on the US rebar market.