Although downward price movements within the US domestic rebar market have stalled this week, sources tell SteelOrbis that the market is still “very vulnerable” and spot prices have not yet hit bottom. In facet, some sources predict further ticks downward as soon as next week, after US domestic scrap prices settle for the month.
Previously, predictions for US scrap prices in June indicated a sideways trend, but the most recent expectations during the ongoing buy-cycle are now pointing to a potential downward trend for shredded scrap. Combined with declining import offers and expectations of competitive offers from Turkey now that Section 232 tariffs against the country have been reduced to 25 percent, US domestic rebar mills have “virtually zero leverage” to prevent spot prices from falling.
US domestic rebar prices have taken a break from the downtrend this week as buyers assess the import and scrap situation, with the spot price range remaining at $33.50-$34.50 cwt. ($670-$690/nt or $739-$761/mt) ex-mill in the Midwest, and $35.00-$36.00 cwt. ($700-$720/nt or $772-$794/mt) ex-mill on the East Coast.