Despite relative stability in the US domestic rebar market, seasonal downticks in demand combined with sideways US domestic scrap prices in the Midwest this month has made the top end of the US domestic rebar spot price range vulnerable to softening. Sources tell SteelOrbis that offers on the high end have eroded by about $0.50 cwt. ($10/nt or $11/mt) in the last week, bringing the range down to $35.00-$38.50 cwt. ($700-$770/nt or $772-$849/mt) ex-mill. Sources also continue to report some deals for major tonnage orders available for below the lowest end of the range.
While some sources contend that the price range erosion is a “temporary” situation that will change after the holidays, others point to serious downtrends in US flat steel pricing as a “warning” to the US long product market. Already, previous rumors of a price increase announcement this month—which would be effective as of Jan. 1—have dwindled away. Sources say that while such an announcement could potentially prevent further downticks in the US rebar spot price range, rebar mills “typically don’t announce price increases unless they expect success.”