US domestic rebar prices have not changed in the last week, and sources tell SteelOrbis that buyers are balancing their “inventory hole-filling” needs between US domestic mill offerings and import inventory that has already arrived. With transportation and logistics costs at “record highs,” sources say import offers moving forward are getting “less attractive.”
High freight rates have not stopped US domestic rebar mills from looking forward to possible price increases in the fall, however, eyeing a Q4 and end-year boost in profits similar to Q2 results that showed many US steelmakers doubling their net earnings compared to Q1 and/or Q2 2017. Sources predict third-quarter results from this year will not soar as high as Q2, as US domestic steel prices—including rebar—are likely to continue trending stable through the summer.
For now, small to medium-sized customers are still being offered around $41.50-$42.50 cwt. ($830-$850/nt or $915-$937/mt) ex-mill for US domestic rebar, while offers to larger buyers are still between $39.00-$39.50 cwt. ($780-$790/nt or $860-$871/mt) ex-mill.