Sources tell SteelOrbis that US domestic rebar mills are still busy, and demand is such that they won’t need to starting making deals quite yet. However, after US domestic scrap prices dropped $75/gt this month, rebar prices are reportedly getting more vulnerable to deals. And if scrap prices decrease again in June according to early predictions, sources say rebar buyers will have more leverage.
For now, US domestic rebar offers are steady in the range of $60.50-$61.50 cwt. ($1,334-$1,356/mt or $1,210-$1,230/nt) ex-mill in the Midwest, and $59.50-$60.50 cwt. ($1,312-$1,334/mt or $1,190-$1,210/nt) ex-mill on the East coast.
Softening import offers could also start putting pressure on US domestic rebar prices. Sources tell SteelOrbis that offers from Algeria are now in the range of $59.00-$60.00 cwt. ($1,301-$$1,323/mt or $1,180-$1,200/nt) DDP loaded truck in US Gulf ports, down $1.00 cwt. ($11/mt or $10/nt) since last week. Offers from Mexico are at $58.00-$59.00 cwt. ($1,279-$1,301/mt or $1,160-$1,180/nt) DDP Houston, down $1.00 cwt. on the high end of the range since last week. Sources tell SteelOrbis that offers from Turkey are likely much lower, but Turkish producers are reluctant to name a specific price.