While many in the US domestic rebar market were surprised by the $1.50 cwt. ($33/mt or $30/nt) mill price increase announced last week, the remaining $0.50 cwt. ($11/mt or $10/nt) of the increase has absorbed into the market thanks to continuously strong demand.
However, because US domestic scrap prices ended up settling sideways this month (despite earlier predictions of another uptrend), sources tell SteelOrbis that there might be “wiggle room” for deals for large tonnage orders. Other sources say the recent mill increase was a “last blast” before import rebar competition heats up next year—the US-EU tariff-rate quota deal is expected to bring “extremely attractive” prices from European producers.
Until then, in light of the upcoming holidays, sources say US domestic rebar prices should trend relatively steady for the rest of the month, at the new levels of $54.50-$56.50 cwt. ($1,202-$1,246/mt or $1,090-$1,130/nt) ex-mill in the Midwest and $53.50-$55.50 cwt. ($1,179-$1,224/mt or $1,070-$1,110/nt) ex-mill on the East coast. But once the tariff-rate quota system commences Jan. 1, “all bets are off,” said one source.