Last week, sources within the US domestic rebar market were split on the prospect of a mill price increase in the near-term. With shredded scrap prices predicted to rise in May, some thought a rebar increase would be inevitable, but others pointed to headwinds such as an influx of lower-prices imports, high freight costs, and concerns about cancelled construction projects. This week, sources are more certain that US rebar mills will raise prices along with scrap next month, with many pointing to the overall steel price uptrend in the US that doesn’t seem to be abating.
Predictions for a rebar price increase amount currently range from $1.50-$2.00 cwt. ($33-$44/mt or $30-$40/nt), although some say that given the relative “sobriety” in the rebar price trend over the last year—when many other steel products prices have surged upward—US rebar mills might try to “catch up” and increase prices by a more robust amount.
For now, US domestic rebar spot prices are unchanged, still ranging from $42.00-$44.00 ($926-$970/mt or $840-$880/nt) ex-mill in the Midwest, and $41.00-$42.00 cwt. ($904-$926/mt or $820-$840/nt) ex-mill on the East coast.