Sources tell SteelOrbis that there are currently “little to no downsides” in the US domestic rebar market, with strong demand and full order books expected to continue long-term. Indications last week that some US rebar mills might be willing to make deals in light of the severe drop in scrap prices this month have not panned out, with sources reporting “solid price firmness” when booking orders.
However, other sources say that while US rebar prices are unlikely to come down anytime soon, they are unlikely to rise either. Even if scrap prices recover in the spring and start to rise, “customers won’t be as forgiving” of an attempted price hike considering the record profits longs mills have been reporting for the last few quarters.
For now, US domestic rebar spot prices are unchanged week-on-week at $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.