While the US rebar market followed a relatively stable price trend over the last year as other steel products plunged then surged ahead, in some cases doubling or tripling in price, sources say US domestic rebar mills have finally caught “price increase fever” after announcing a significant price increase this week on the heels of a separate price increase just weeks ago.
Nucor started out with a $2.50 cwt. ($55/mt or $50/nt) increase, but after CMC responded almost immediately with a $4.00 cwt. ($88/mt or $80/nt) price increase, Steel Dynamics Inc. and Gerdau followed suit. Sources say Nucor’s increase is “basically null and void” and new offers are already up by the full $4.00 cwt.
Buyers have little to no leverage in negotiating considering strong demand conditions and tight supply. Sources report lead times at most US rebar mills have stretched into late summer, although there is no indication mills are planning to increase capacity to fill orders sooner. As for the possibility of further price increases, one source said buyers should “count on it,” regardless of how US domestic scrap prices trend in the coming months.
Until then, US domestic rebar spot prices are up substantially this week, at $50.00-$52.00 cwt. ($1,102-$1,146/mt or $1,000-$1,040/nt) ex-mill in the Midwest, and $49.00-$51.00 cwt. ($1,080-$1,124/mt or $980-$1,020/nt) on the East coast.