Although US rebar mills expected an increase in scrap prices when they issued a pre-emptive "no-change" announcement for rebar transaction prices, that doesn't exactly mean that they will maintain the status quo. Despite demand levels for rebar that are not exactly spectacular, sources tell SteelOrbis that mills are not being as aggressive in their pursuit of orders, and there is a strong chance they will try to gradually firm up spot prices in line with the $15-$25/lt (depending on region) increase in shredded scrap. For now, rebar spot prices are still in the range of $31.50-$32.50 cwt. ($705-$717/mt or $630-$650/nt) ex-mill, but that could change as early as next week.
As for imports, resistance to higher offers from Turkey has resulted in another week of static prices, with most offers still in the range of $28.50-$29.50 cwt. ($628-$650/mt or $570-$590/nt) DDP loaded truck in US Gulf ports. Nevertheless, traders report decent--but not strong--inquiry activity for both Turkish and Mexican offerings, even though Mexican prices are in the same range (DDP loaded truck delivered to US border states) and can be delivered much quicker. However, if US rebar mills are successful in pushing up US domestic rebar prices, there is a good chance Mexican mills will follow suit with offer prices to the US.