Although US domestic rebar mills have not yet announced a price increase following the $50/mt increase in US shredded scrap prices this month, sources still think an announcement is imminent. Already, buyers are finding difficulty booking orders on the lower end of the general price range, and many are expecting prices to reach the $50.00 cwt. ($1,102/mt or $1,000/nt) ex-mill level “sooner rather than later.” The last time US domestic rebar prices reached that level was in July 2008, hitting a high of $53.00 cwt. ($1,168/mt or $1,060/nt) ex-mill before crashing down to $28.00 cwt. ($617/mt or $560/nt) ex-mill by the end of that year.
While sources do not believe a similar plunge is imminent—the 2008 crash coincided with a major recession while today’s economy is already in recovery from the pandemic—most market players believe prices will come down eventually, but perhaps not for a while. A survey among attendees at SteelOrbis’ virtual Rebar & Wire Rod conference this week indicated most expect prices to remain high through the rest of this year.
Until US rebar mills make an announcement, spot prices are unchanged this week at $46.00-$48.00 cwt. ($1,014-$1,058/mt or $920-$960/nt) ex-mill in the Midwest, and $45.00-$47.00 cwt. ($992-$1,036/mt or $900-$940/nt) ex-mill on the East coast, although as mentioned, offers on the lower end of the ranges are mostly unavailable.