The latest US residential construction statistics indicate a severe downturn in demand, with building permits dropping 20.8 percent and housing starts declining 24.3 percent in April. Sources tell SteelOrbis that May data should be just as bad, if not worse, reflecting dwindling rebar demand in the US that “might not turn around as fast as states are reopening,” one source said.
However, with a boost in US scrap prices this month and an early expectation of a sideways scrap trend in June, US domestic rebar mills are holding tight to price levels, only offering deals on “significant orders.” For most buyers, US domestic rebar spot prices are unchanged week-on-week at $29.50-$30.50 cwt. ($590-$610/nt or $650-$672/mt) ex-mill in the Midwest, and $30.00-$31.00 cwt. ($600-$620/nt or $661-$683/mt) ex-mill on the East coast.