Although US domestic rebar mills reportedly put plans for further prices increases on the back-burner late last month after a US DOC investigation was launched into “illegitimate profiteering,” sources say mills’ “cautious stance” might not last long. So far, sources say the investigation has not ramped up in any significant way, and some speculate that the announcement by US DOC Secretary Wilbur Ross was intended as a message to mills that they need to “rein in out-of-control prices” before they start damaging the economy, rather than an actual threat of legal consequences. As long as mills back off for now, sources say, they “don’t have to worry about the DOC.”
If such speculation proves to be true, sources say there is a good chance US domestic rebar mills will try raising prices again after the slower-demand summer months. Another factor in US mills’ favor is the import market—with the exception of Turkey, most import rebar offers are still higher than US domestic prices, giving US mills a continued competitive edge.
For now, US domestic rebar spot prices are stable week-on-week, with offers to large distributors still hovering around $39.50 cwt. ($790/nt or $871/mt) ex-mill, and offers for small to medium-sized customers closer to $41.50-$42.50 cwt. ($830-$850/nt or $915-$937/mt) ex-mill.