US rebar market – Domestics still have forward momentum

The pricing trend for domestic rebar is still slightly up, as mills are still busy filling demand from the strong construction market. As previously announced, Nucor's $0.40 cwt. ($8.80 /mt or $8 /nt) Raw Material Surcharge price hike was implemented July 1, and domestic prices now 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. Market experts predict another slight price increase for August. The import pricing trend is neutral, but the market is still pretty firm, certainly stronger than the softening import wire rod market. Turkish mills report full rolling schedules until in to September. However, the rainy season in Asia is expected to weaken the market a bit, as demand has waned there and they are looking to export more tonnage. Fortunately, softening Chinese rebar prices has only a side effect on the US market, since Chinese rebars are under antidumping and barred from the US market. This week, prices for import rebar remain at a range of $27.25 cwt. to $28.25 cwt. ($601/mt to $623/mt or $545/nt to $565/nt) FOB loaded truck in US Gulf ports. US government import license data shows that the three countries which exported the most rebar to the US, year-to-date, as of July 11, 2006 were: Turkey, at 676,426 mt; Taiwan, at 190,484 mt; and Japan, at 143,149 mt.