Short-term forecast for US domestic rebar looks grim

Wednesday, 18 September 2019 21:36:21 (GMT+3)   |   San Diego

Although buyers currently have the upper hand in the US domestic rebar market, demand remains sluggish and lower prices are not yet enough to entice them to place significant orders. Additionally, with expectations that US domestic scrap prices will drop next month, buyers are reportedly holding out for lower prices to fill inventory needs.

This week, spot prices for US domestic rebar have declined, although the “lowest of the low” prices are still considered relative outliers and not available to all buyers. US domestic rebar spot prices in the Midwest are now trending at $31.00-$32.50 cwt. ($620-$650/nt or $683-$717/mt) ex-mill, reflecting a drop of $1.00 cwt. ($20/nt or $22/mt) on the low end and $0.50 cwt. ($10/nt or $11/mt) on the high end. On the East Coast, US domestic rebar prices are now ranging from $32.00-$33.00 cwt. ($640-$660/nt or $705-$728/mt) ex-mill, reflecting an overall drop of $0.50 cwt. ($10/nt or $11/mt) in the last week.

Sources tell SteelOrbis that spot prices are expected to continue drifting downward in the near-term, barring some unexpected event.

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