US domestic rebar prices rose this week for the first time since early September after several domestic mills announced price increases effective Nov. 7 for bar products, market insiders told SteelOrbis this week.
Insiders said Nucor Bar Group announced a $30/nt ($33.07/mt) or $1.50/cwt., increase in its posted rebar pricing effective for new orders received before the close of business on Nov. 7. Nucor said all confirmed orders received by that date will be price protected if shipped by Nov. 21. Insiders said CMC followed suit with an equivalent increase of its own following the Nucor announcement.
And, while the mill didn’t specify a reason for the increase in its customer announcement, market insiders told SteelOrbis they have been expecting a price increase from the mills for several weeks now as a result of continued tight domestic supplies which is causing ongoing customer allocations, as long steel imports continue to be constrained by ongoing 50 percent Section 232 steel import tariffs.
“The domestic price of rebar is very close to the import price right now,” remarked one Midwest long steel importer. “Usually, the mill price is higher, and the import price is lower. This is an atypical situation,” he added. “This is bumping up rebar demand during the winter months, when demand is usually much lower.”
In the weekly rebar spot markets, domestic supply on an FOB mill basis was assessed with most transactions noted at $46.00-47.00/cwt, ($920-940/nt or $1,014-1,036/mt), on average $46.50/cwt, ($930/nt or $1,025/mt), up $1.50/cwt ($30/nt or $33/mt) from seven days earlier. While the rebar average rose a full $1.50/cwt., insiders report weekly trades ranged as low as $44.50 and as high as $48.00/cwt. ($890-960/nt or $981-1,058/mt), depending on the size of the customer.
“Everyone seems to be getting on board with the Nucor price increase,” noted one US East Coast rebar dealer. “On the wire rod front, we are expecting wire to follow the rebar pricing pretty closely.”
In the domestic wire rod market, domestic supply on an FOB mill basis was assessed with most transactions steady for now at $46.50-47.50/cwt ($930-950/nt or $1,025-1,047/mt), or an average of $47.00/cwt ($940/nt or $1,036/mt), unchanged from seven days ago.
“Not every product is as strong as rebar right now,” the Midwest long steel insider added.
On the raw materials front, although it remains early to make a fully informed determination for the local scrap market's’ December trend, most market sources told SteelOrbis they expect a sideways movement while a few mentioned a potential $10-20/gt increase for Detroit-area shredded material might be possible.
“I’m calling the December scrap market sideways right now,” said one US Midwest mill-based scrap buyer. “Though, it’s an easy call right now, because its very early.”