Increase absorption stalls in US rebar market

Thursday, 28 March 2013 00:43:50 (GMT+3)   |   San Diego
       

After a small portion of the US domestic rebar market's $1.25 cwt. ($28/mt or $25/nt) transaction price increase for April went through a little over a week ago, further momentum has stalled.  Most spot prices are still in the range of $34.00-$35.00 cwt. ($750-$772/mt or $680-$700/mt) ex-mill--reflecting $0.50 cwt. ($5.50/mt or $5/nt) of the increase--and sources tell SteelOrbis that mills' attempts at pushing through more of the increase have been met with resistance, as many customers expect a decrease in shredded scrap prices next month.  However, some distributors have reportedly paid $1.00 cwt. ($22/mt or $20/nt) of the increase with little trouble passing it down to their own customers, indicating pockets of success where demand is strong.  While they might be able to get slightly more of the increase in the next week or so, any further upticks will be short-lived.

As for imports, Turkish offer prices have remained stable despite a slight drop in CFR prices this week--traders tell SteelOrbis that they didn't raise sales prices when CFR prices increased earlier this month, so there is no reason to lower prices now.  Therefore, Turkish rebar is still being offered for the most part in the range of $29.50-$30.50 cwt. ($650-$672/mt or $590-$610/nt) DDP loaded truck in US Gulf ports--unchanged in the last week.  Mexican offer prices, meanwhile, have followed the US domestic rebar trend and increased in the last week, by about $1.00 cwt., although demand is tepid as US customers hold out for next month's scrap decrease.  For now, most Mexican offers are in the new range of $31.50-$32.50 cwt. ($694-$717/mt or $630-$650/nt) DDP loaded truck delivered to US border states, but traders report that Mexican mills are willing to be flexible with larger orders.


Similar articles

Downtrend reverses in Pakistan’s import scrap segment

27 Mar | Scrap & Raw Materials

Pakistani buyers delay new scrap bookings as mood in finished steel segment falters

06 Mar | Scrap & Raw Materials

Turkey’s deep sea scrap market set to show clearer trend next week

01 Feb | Scrap & Raw Materials

Import scrap prices in Pakistan expected to rise further, demand not supportive

10 Jan | Scrap & Raw Materials

Taiwan’s import scrap market softens further despite positive rebar sales situation

05 Jan | Scrap & Raw Materials

Import scrap trade remains muted in Pakistan, prices mainly unchanged

03 Jan | Scrap & Raw Materials

Taiwan’s import scrap market softens as rebar trading slows down

29 Dec | Scrap & Raw Materials

Australia’s Green Steel of WA to build green steel recycling mill

28 Dec | Steel News

Import scrap activity in Pakistan muted due to European sellers’ absence, Red Sea crisis

27 Dec | Scrap & Raw Materials

SteelOrbis year-end review: Turkish steel industry experiences an even more difficult year in 2023

25 Dec | Steel News