Although Gerdau has not rescinded--officially or quietly--the $1.00 cwt. ($20/nt or $22/mt) rebar price increase for June 1 shipments, sources tell SteelOrbis that customers are expected to push back at any attempt at raising prices. Predications for the scrap market point to a downward trend for June, and import offers are still low--and poised to drop even lower. Combined with the upcoming slow summer season, this leaves little price leverage in US mills’ hands. So while the current spot range remains unchanged in the last week at $34.25-$35.25 cwt. ($685-$705/nt or $755-$777/mt) ex-mill, that range is by no means secure.
As for imports, traders tell SteelOrbis that their customers are pressuring them to offer Turkish rebar at sub-$29.00 cwt. ($580/nt or $639/mt) levels, but import prices that traders are paying on the CFR level do not warrant such deals. Therefore, offer prices for Turkish rebar are still in the range of $29.50-$30.50 cwt. ($590-$610/nt or $650-$672/mt) DDP loaded truck in US Gulf ports, and until Turkish mills lower offers on their end, there is little chance of that range moving downward.