While US domestic merchant bar mills decreased transaction prices last week--by $1.40 cwt. ($31/mt or $28/nt)--in line with the scrap downtrend, sources tell SteelOrbis that the move has not negatively affected last month's efforts to clean up discounting in the market. Mills are holding firm with the new published price range of $40.10-$41.55 cwt. ($884-$916/mt or $802-$831/nt) ex-mill, and for the most part, are not offering deals underneath to major distributors. However, despite the firmness in pricing in the US merchant bar market, demand is relatively weak. Mixed messages in end-use economic data (such as gains in demand and activity one month only to drop the next) have left a pervading feeling of uncertainty and resulted in many US distributors not being that interested in stocking up too much.
The uncertainty has also flowed over into the merchant bar import market, where demand is just as low as with other long products such as rebar and wire rod. Even when import offer prices were relatively low earlier this month, US customers were not entirely interested. However, although it is yet to be seen if scrap prices in Turkey have begun to make a turnaround, import merchant bar offers rose and prices are back in the same range they were in mid-August: $39.00-$40.00 cwt. ($860-$882/mt or $780-$800/nt) DDP loaded truck at US Gulf ports--although traders report that what little transactions taking place are at the lower end of the range.