In our last report a week ago, SteelOrbis reported that some sources were claiming US rebar mills would be setting price policy “with caution” due to low import offers in the market and general uncertainty. This week, that sense of “caution” has became the prevailing sentiment among sources, who say that even though the price increase announced in late February had been absorbed into the market “in general,” prices have not increased for everyone.
One source reported being able to get mills to lower prices slightly before applying the price increase, thus resulting in neutral prices. While this could be an outlier situation, other sources report US domestic rebar mills are eager for orders and thus flexible with spot price levels, which are currently stable in the range of $35.50-$36.50 cwt. ($710-$730/nt or $783-$805/mt) ex-mill in the Midwest, and $37.00-$38.00 cwt. ($740-$760/nt or $816-$838/mt) ex-mill on the East Coast. However, that flexibility does not extend to all buyers, and small-tonnage orders are still on the high side of the range.