No word from US rebar mills regarding prices

Thursday, 29 August 2013 01:53:54 (GMT+3)   |   San Diego

While US domestic mills have experimented with their pricing policy announcements in the last few months--releasing separate RMS updates and transaction price notices, instead of announcing them together--they have at least been consistent with making some sort of pronouncement each month. However, with only days left of August, there has been no word from mills regarding rebar prices. Sources confirm that the lack of communication has gone hand-in-hand with a lack of price movement, which partially explains the "radio silence." But another factor is likely the predicted September scrap trend--many believe shredded will decrease moderately again, and mills' non-reaction to August's slight drop will likely repeat in September, indicating that mills are intent on keeping prices firm. They certainly have the leverage to do so, according to sources, who report that mills are still busy and out of many sizes. So for now (and likely for a while), US rebar spot prices are still in the range of $31.50-$32.50 cwt. ($705-$717/mt or $630-$650/nt) ex-mill.

Import offer prices are also stable from last week, although Mexican mills are still reportedly flexible with their range of $29.50-$30.50 cwt. ($650-$672/mt or $590-$610/nt) DDP loaded truck delivered to US border states. Turkish import offers, on the other hand, have struggled to absorb an increase on the CFR level--CFR prices increased about $15/mt two weeks ago, but traders report resistance when trying to translate that increase into sales prices. For now, Turkish offers prices remain in the range of $28.50-$29.50 cwt. ($628-$650/mt or $570-$590/nt) DDP loaded truck in US Gulf ports.

 


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