Many in the US rebar market were surprised when US mills dropped transaction prices a couple weeks ago following a scrap downtrend, mostly because demand appeared to be strong enough to withstand it. As such, sources tell SteelOrbis that purchasing activity in the US rebar market has picked up in the wake of lower prices, with distributors in particular reporting an ample bump in orders. Considering such demand levels, it is becoming unlikely that mills will drop prices again next month if scrap falls slightly--as many are predicting--because if they can still fill order books with higher prices, they will. For now, the general spot range remains around $34.00-$35.00 cwt. ($750-$772/mt or $680-$700/nt) ex-mill--unchanged in the last week.
Meanwhile, traders are trying to hold the line against softening Turkish rebar prices--CFR prices dropped slightly this week, but most traders refuse to offer any less than the current range of $29.50-$30.50 cwt. ($650-$672/mt or $590-$610/nt) DDP loaded truck in US Gulf ports. Despite margins already being so slim, a few traders admitted that they might be willing to negotiate on an individual basis, especially if it looks like Turkish rebar offerings will remain weak. Such weakness has already affected Mexican rebar offers, as the previous week's offer range proved to be too high for US customers' tastes. Mexican rebar offers are now in the range of $29.75-$30.75 cwt. ($656-$678/mt or $595-$615/nt) DDP loaded truck delivered to US border states, reflecting a $0.75 cwt. ($17/mt or $15/nt) decrease from last week. However, with Mexican mills offering rebar domestically for so much more than to their export sources, there's a good chance the above price range has hit bottom.