Nucor Bar Group increased the price of rebar products by $40/nt ($43.00/mt), or $2.00/cwt. on February 10 effective with new orders in response to a “significant rise in input costs,” which has impacted its operations, the company said in a letter to its customers.
Long steel market insiders told SteelOrbis the increased cost of February scrap was likely behind the Nucor price increase, which they said was sure to be copied by other competing mills throughout the US Midwest.
“All the mills were out there after Nucor raised its rebar prices,” reported one Midwest rebar insider. “We’re hearing rebar pricing from mills offered about $40.00 cwt. [$800/nt or $882/mt], up from about $38.00/cwt. [$760/nt or $838/mt] a week before.”
During February monthly buy-cycle negotiations, Midwest shredded scrap in the Ohio Valley traded an average $35/gt ($36/mt) higher from January to $430-435/gt ($437-442/mt) as a result of continued reports of scant inventory at both mills and suppliers after recent cold weather and transportation problems affected scrap deliveries across much of the eastern two-thirds of the US.
Most market insiders cautioned that this week’s Nucor price increases are yet to be fully reflected in new spot market transactions, reporting spot rebar up only about $1.00/cwt., ($20/nt or $22/mt) from a week earlier on a delivered to customer basis at $38.00-39.50/cwt. ($760-790/nt or $838-871/mt).
Nucor said all orders as of the close of business on February 10, 2025 would be price protected if shipped by February 24.