Last week, SteelOrbis predicted that buyers in the US domestic rebar market might gain some leverage if US scrap prices decreased this month. Now that Midwest shredded scrap prices for August have settled at around $20/mt lower than July, buyers are reportedly using the raw material factor in combination with seasonal slow sales to negotiate lower prices with US rebar mills.
Success in such negotiations has varied, but sources tell SteelOrbis that the highest price for most small and medium sized customers has dropped to $42.00 cwt. ($840/nt or $926/mt) ex-mill, down $0.50 cwt. ($10/nt or $11/mt) since last week. On the other end of the spectrum, sources report large customers are hearing prices closer to $39.00 cwt. ($780/nt or $860/mt) ex-mill, or even slightly lower, indicating last week’s top end of the large customer range—$39.50 cwt. ($790/nt or $871/mt) ex-mill—is no longer in play.
However, sources are cautious of this newly flexible trend going forward, with many predicting that US rebar mills will raise prices again when activity picks up again after summer.