US rebar market – Domestics stable, imports down

The pricing trend for domestic rebar is still slightly up, as demand and consumption are still healthy. However, the downward price movement in the scrap market will most likely keep rebar prices from rising significantly. The big decrease in auto bundle prices will translate to lower shredded prices, and in turn, affect rebar transaction prices. The domestic rebar market is strong, but Nucor and other domestic producers may have to decrease the Raw Materials Surcharge (RMS) because of lower scrap costs. However, they may increase base prices for September so that they can keep the net price from falling. As previously announced, Nucor and other domestic producers did not raise transaction prices for August. Domestic rebar offers still range from $27.90 cwt. to $28.40 cwt. ($615 /mt to $626 /mt or $558 /nt to $568 /nt) ex mill. Usual price extras apply for smaller sizes. The pricing trend for import rebar is still slightly down, and prices have slipped $0.25 cwt. ($5.50 /mt or $5 /nt) since last week. The domestic fabrication business is still strong, but large distributors have closed their purchases for 2006 arrivals. Inventories are still building, as many shipments are arriving late. Some of these shipments are arriving with a 2 to 3 month delay, many of them coming in at the same time as more expensive shipments that were booked more recently. As the largest exporter of rebars to the US, Turkish mills are indicating willingness to book one more large cargo before the end of the year; however, they are not showing signs of desperation. There is already talk about cutting production rather than reducing pricing significantly. Taiwanese mills, on the other hand, are very interested in shipments since their regional market took a big dive, partly because of the lack of demand during the wet season. Import rebar offers now range from $27.00 cwt. to $28.00 cwt. ($595 /mt to $617 /mt or $540 /nt to $560 /nt) FOB loaded truck in US Gulf ports.