Before one US domestic rebar mill announced a $1.50 cwt. ($33/mt or $30/nt) transaction price increase late Wednesday, distributors reported a significant jump in ordering activity, as most customers wanted to stock up before the increase, which is not expected to be a temporary phenomenon--scrap is expected to maintain current high prices for the next month or so, and there are not many rebar import shipments expected to come in during that time. Because the $1.50 cwt. increase doesn't take effect until shipments after September 1, US domestic spot prices are still in the range of $33.00-$34.00 cwt. ($728-$750/mt or $660-$680/nt) ex-mill (although most transactions are taking place at the higher end of the range).
However, even if US mills find little resistance, in general, to the price increase, they might still be flexible with larger customers to prevent driving them toward the import market. Turkish rebar prices are on an uptrend, but Turkish mills are waiting for the US domestic price outlook to settle before offering new prices. Mexican mills are doing the same, although traders expect Mexican rebar offers to increase exactly along the lines of however much US domestic prices rise. Until then, offer prices still stand at $30.00-$31.00 cwt. ($661-$683/mt or $600-$620/nt) DDP loaded truck in US Gulf ports from Turkey, and $30.50-$31.50 cwt. ($672-$694/mt or $610-$630/nt) DDP loaded truck delivered to US border states from Mexico.