US domestic rebar prices continued slightly lower this week as available supply is reported high and demand remains sketchy, while wire rod prices were stable in limited trade, market insiders told SteelOrbis.
“Prices this week are very steady on the lower side,” said one SteelOrbis insider. “Demand for rebar remains somehow weak but steady,” replied a Midwest rebar dealer.
In the domestic weekly rebar spot markets, domestic supply on an FOB mill basis is assessed with most transactions noted at $37.50-38.50/cwt., ($750-770/nt or $827-849/mt), on average $38.00/cwt. ($760/nt or $838/mt), down from $37.50-39.00/cwt. ($750-780/nt or $827-860/mt), on average $38.25/cwt., one week prior.
“Certain US regions are softer than others in the domestic rebar market, like Texas,” said another SteelOrbis long steel market insider.
“Things are still sluggish, there is rebar to be bought,” said another East Coast rebar dealer. “Scrap prices could go up in June,” he said. “There are three new mills that will need scrap. But will the Nucor and CMC mills just shift scrap tons from other mills to the new rebar mills? If so, there won’t be an increase in demand for scrap, just a shift in supply. Plus, if there is a domestic market for scrap, less will be exported. So, I don’t think increased domestic mill demand will affect the scrap pricing too much.” He continued, “Otherwise, pricing is still softening all over,” he said. “We expected to see a mill price decrease that never came but, if scrap prices fall again, I am certain we will see one.”
In the domestic wire rod market, most transactions were reported this week at $44.50-45.50/cwt. ($890-910/nt or $981-1,003/mt), or an average of $45.00/cwt. ($900/nt or $992/mt), unchanged from seven days ago.
