US rebar increase already works its way into market

Thursday, 16 August 2012 23:22:32 (GMT+3)   |  

While the $1.50 cwt. ($33/mt or $30/nt) increase in rebar transaction prices announced last week was set for September shipments, sources tell SteelOrbis that the full amount has already worked its way into the spot market.  US domestic rebar spot prices are now in the range of $34.50-$35.50 cwt. ($761-$782/mt or $690-$710/nt) ex-mill, and distributors report that purchasing activity is still lively, as many expect shredded scrap prices to increase again next month (although not as dramatically as August's $80/long ton surge).

Some import rebar offers have followed the US price trend, with traders raising offer prices to keep the margin between import and domestic prices comfortable.  Turkish offer prices are now $31.00-$32.00 cwt. ($683-$705/mt or $620-$640/nt) DDP loaded truck in US Gulf ports--a $1.00 cwt. ($22/mt or $20/nt) increase in the last week--but orders are not exactly "flying off the shelves," according to sources.  Meanwhile, Mexican mills have remained uncharacteristically quiet following the US rebar price announcements--typically, they immediately reflect the US trend in their offer prices, but many traders have not heard anything new from south of the border.  Therefore, Mexican rebar offer prices are likely still 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 last week.


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