Although most predictions are pointing to an increase in US shredded scrap prices next month, it is unclear how much an uptrend will affect US domestic rebar prices. Mills will no doubt raise official transaction prices in line with scrap, but sources say spot prices might not be quick to firm, especially considering how vulnerable they still are. Mills kept transaction prices neutral after a slight drop in scrap prices earlier this month, but it didn't stop spots from dipping to $31.50-$32.50 cwt. ($705-$717/mt or $630-$650/nt) ex-mill--down $1.00 cwt. ($22/mt or $20/nt) in the last week. If anything, a boost in scrap prices might stop rebar spots from slipping any further; but unless the scrap trend rises sharply, rebar prices will not see much of a reversal, if any.
As for imports, traders tell SteelOrbis that Turkish mills are trying to push import rebar offers up by $10/mt with little success, and therefore sales prices in the US are unchanged this week at $28.25-$29.25 cwt. ($623-$645/mt or $565-$585/nt) DDP loaded truck in US Gulf ports. Unsold position saturation continues to hamper future ordering, as well as weak US domestic prices. Mexican rebar offers are also seeing little interest in the offer price range of $28.50-$29.50 cwt. ($628-$650/mt or $570-$590/nt) DDP loaded truck delivered to US border states--unchanged in the last week. However, extremely short lead times continue to make the Mexican option attractive to US buyers who would otherwise stick with domestics.