While previous predictions of a modest scrap price increase in March resulted in expectations of a stable trend for US rebar in the near-term, sentiment has shifted now that it seems like scrap could move upward beyond previous forecasts. As such, sources are now saying a US rebar mill price increase is virtually guaranteed.
Mills are expected to wait until scrap prices settle in March, and most sources are pegging the potential increase amount at anywhere from $1.00-$2.00 cwt. ($22-$44/mt or $20-$40/nt). Sources also say the increase will likely face little to no resistance from buyers, considering rebar mills have been relatively measured in their price increases compared to other steel products.
For now, US domestic rebar spot prices are unchanged week-on-week, in the range of $39.00-$41.00 cwt. ($860-$904/mt or $780-$820/nt) ex-mill in the Midwest, and $38.00-$39.00 cwt. ($838-$860/mt or $760-$780/nt) ex-mill on the East Coast.