US rebar market – Domestic and import pricing trends still on the decline

It is still a very quiet time for the domestic rebar market in the US, as business is slow, and rumors of domestic price decreases abound. It is likely that if shredded scrap prices fall another notch, domestic rebar producers will not be able to maintain their transaction prices as they did for December. Domestic rebar mills might also consider going down with pricing in order to keep their order books full during this period of slow market activity. However, rebar mills are still busier than wire rod mills. Also, most rebar mills have the advantage of rolling merchant bars interchangeably, which gives them the flexibility to lower rebar production if merchant bar demand is healthier. If scrap stays stable or starts to rise next month, domestic rebar producers will most likely stick to current pricing. For now, domestic rebar offers still range from $26.65 cwt. to $27.15 cwt. ($588 /mt to $599 /mt or $533 /nt to $543 /nt) ex-mill. The usual price extras apply for smaller sizes and grade 60. The pricing trend is still slightly down. Import rebar mills are now offering for February/March arrivals. Distributors' inventories will be greatly reduced by this time, so they will eventually have to place some orders. But for now, customers are shopping around, trying to find the lowest price, and very few deals have actually been made. With the slow rebar markets in Turkey, the Middle East, and Europe, import prices are expected to decline further before year-end, and customers are waiting to see prices fall below $24.00 cwt. ($529 /mt or $480 /nt). Even though Turkish mills are fighting the expectations of US customers for now, the pricing trend is still down, as US customers will not be in a hurry to order for many weeks to come. As of now, most import rebar offers range from $24.75 cwt. to $25.75 cwt. ($546 /mt to $568 /mt or $495 /nt to $515 /nt) FOB loaded truck, in US Gulf ports.