Sources tell SteelOrbis that deals have expanded below last week’s average spot range, with lower prices not necessarily limited to the largest buyers in the market. Resistance to higher prices comes after two consecutive months of US domestic scrap price decreases and early indications of further scrap softening in October, which sources say is allowing US rebar buyers to push for lower prices despite reports of limited rolling availability at US rebar mills.
This week, the lowest price level heard in the US domestic rebar market is $37.00 cwt. ($740/nt or $816/mt) ex-mill. On the top end of the range, sources say some smaller distributors are still seeing offers closer to $40.00 cwt. ($800/nt or $882/mt) ex-mill. Despite the vulnerable prices, sources say there is still a “good chance” US domestic rebar mills will try to raise prices before the year is over.