While demand and prices remain steady this week within the US domestic rebar market, sources are looking ahead to a possible uptrend in prices if US scrap prices remain strong. Expectations for November scrap prices have already shifted from a likely sideways to a possible uptrend, and while sources do not foresee an immediate response from US rebar mills—such as an announced price increase—they do predict firming toward the high end of the current spot price range. However, sources on the East coast are less optimistic about prices compared to Midwest-based sources, with one mid-size distributor noting that larger distributors are still getting deals from the mills.
Looking even further ahead, some sources are already speculating about another possible uptrend in scrap prices in December, and if that happened, US rebar mills would “absolutely raise prices,” one source said. However, whether buyers would stock up ahead of a price increase during a traditionally slow demand season during the holidays is up for debate.
For now, current spot prices are unchanged week-on-week, at $31.50-$32.50 cwt. ($694-$717/mt or $630-$650/nt) ex-mill in the Midwest, and $31.00-$32.00 cwt. ($683-$705/mt or $620-$640/nt) ex-mill on the East coast.