Although shredded scrap prices came down in the predicted range of $40-$50/long ton, US domestic rebar mills are bullish on near-future scrap trends, and will likely only drop rebar transaction prices by $1.00-$1.50 cwt. ($22-$33/mt or $20-$30/nt) this week. An anticipated seasonal tightening of scrap collection will, according to sources, reverse the scrap trend sooner than later, and thus mills are only willing to concede a portion of this month's scrap downtrend. In fact, sources tell SteelOrbis that even with a moderate price decrease on paper, rebar mills will probably get more aggressive as the month wears on about concluding transactions in the upper end of the price range. Until anything official is announced, however, spot prices are still in the range of $33.75-$34.75 cwt. ($744-$766/mt or $675-$695/nt) ex-mill.
Import prices, meanwhile, are trending neutral at the moment, but sources say Mexican mills might hold off on following the US price trend--as they usually do--if it becomes clear that US prices have hit bottom for the quarter. Current Mexican rebar offer prices are in the range of $30.50-$31.50 cwt. ($672-$694/mt or $610-630/nt) DDP loaded truck delivered to US border states--unchanged from the previous week's drop--and traders tell SteelOrbis that the range could very well mark a year-end bottom as well. Turkish offer prices are also unchanged in the last week, but considering reported weakness in the local Turkish rebar market, the current offer range of $31.00-$32.00 cwt. ($683-$705/mt or $620-$640/nt) DDP loaded truck in US Gulf ports might be under pressure to decrease.