Despite a neutral transaction price announcement in reaction to a sideways scrap move this month, US domestic merchant bar spot prices are still soft, with deals being offered by all mills. Most of the discounts are still averaging around $1.00-$2.00 cwt. ($22-$44/mt or $20-$40/nt) underneath the published price range of $46.05-$51.25 cwt. ($1,015-$1,130/mt or $921-$1,025/nt) ex-mill, but some distributors report rebates offered to them for as much as $3.00 cwt. ($66/mt or $60/nt) off official prices. However, the widespread dealmaking in the market is not attributed to demand; sources tell SteelOrbis that demand is "steadier than it has been recently" with substantial activity in the agricultural and energy sectors. The reason prices are so soft, sources say, is because other long products--such as rebar--are suffering from low demand, and thus mills are trying to pick up the order slack elsewhere, especially with high-margin products like merchant bar.
In fact, demand is steady enough that US buyers are showing interest in offshore material. Current import merchant bar offer prices from Turkey are still in the general range of $39.50-$40.50 cwt. ($871-$893/mt or $790-$810/nt) DDP loaded truck at US Gulf ports, and about $1.00 cwt. ($22/mt or $20/nt) higher into the East Coast. However, traders tell SteelOrbis that those prices might decline in the near-term, as scrap prices in Turkey are currently facing a downtrend, with long product prices likely to follow.