Is a third US rebar increase on the horizon?

With two price increases announced within the last month, another increase letter would seem to be the last thing the US domestic rebar market needs. However, considering how swiftly the first two were absorbed into the market and the strength of scrap prices this month, rumors of more upticks on the way are starting to gain steam.

Already, sources tell SteelOrbis that the wide spot range of $27.50-$30.50 cwt. ($550-$610/nt or $606-$672/mt) ex-mill is starting to narrow. Some large customers are still able to book at the lowest end of the range (with a few outlier deals even heard slightly below), but the bulk of domestic rebar buyers in the US are ordering tonnages closer to the middle and upper end of the range. However, early predictions for the May scrap trend are already quite varied, and such uncertainty might result in US mills pulling back from a third rebar increase. At the very least, source say, the spot range will continue to narrow, even for the preferred distributors currently getting the best deals.