After US domestic rebar mills issued a price increase last week, sources say it has been fully absorbed, and although there are some rumors about a scrap price decrease in the coming months, the sentiment for rebar remains optimistic.
Rebar mills will likely become more flexible with spot prices in the event of a scrap downtrend, but sources say overall, the market will likely undergo a “three steps forward, one step back” situation in which spot prices do not return to their pre-pandemic levels. One year ago, just before Covid shutdowns, US domestic rebar was in the range of $31.50-$33.00 cwt. ($630-$660/nt or $694-$728/mt) ex-mill in the Midwest, while prices on the East coast were at $32.00-$33.00 cwt. ($640-$660/nt or $705-$728/mt) ex-mill. Sources say the “new normal” will likely put rebar prices in the $35.00-$40.00 cwt. ($772-$882/mt or $700-$800/nt) ex-mill range, if not slightly over.
This week, US domestic rebar spot prices are unchanged, but sources report supply is getting tighter—as such, spot prices could drift upward soon even without a formal price increase announcement. In the Midwest, US domestic rebar spot prices are still in the range of $42.00-$44.00 ($926-$970/mt or $840-$880/nt) ex-mill, while spot prices on the East coast are still at $41.00-$42.00 cwt. ($904-$926/mt or $820-$840/nt) ex-mill.