As rebar buyers in the US continue to work through existing orders, overall market activity has not slowed substantially, but sources warn that could change soon if stay-at-home orders to control the spread of the coronavirus sustain indefinitely. However, capacity at US rebar mills has dwindled in recent weeks, keeping supplies and thus prices relatively tight. Sources tell SteelOrbis that as a result, lower scrap prices this month won’t have as dramatic of an impact as they would otherwise. US domestic rebar prices will still soften, but sources say the amount of the price decrease “won’t exactly mirror” the scrap price drop, which was reported today at down $40-$50/mt for shredded scrap, depending on the region.
Already, US domestic rebar prices reflect an erosion on the top end of previous ranges. In the Midwest, spot prices are now at $30.00-$31.00 cwt. ($600-$620/nt or $661-$683/mt) ex-mill, reflecting a decrease of $0.50 cwt. ($10/nt or $11/mt) on the high end. On the East coast, US rebar spot prices are at $30.50-$31.50 cwt. ($610-$630/nt or $672-$694/mt) ex-mill, also dropping $0.50 cwt. on the high end.