US rebar market – Imports rise again, domestic market awaits July increase

Import rebar prices have improved by $0.50 cwt. since last week, with offers now ranging from $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. The import pricing trend for rebar is still strongly up. But some analysts are cautious. Turkey, a major rebar source for the US, just increased key interest rates by 1.75%. This could potentially cause a decline of the Turkish housing market and, consequently, less demand for rebars. On the other hand, higher interest rates could make the Turkish Lira a bit stronger which could prompt price hikes of Turkish export pricing. The domestic pricing trend for rebar is also up, and Nucor is expected to announce another price increase for July. Shredded scrap prices have increased slightly since last month (about $10/ton), and demand is still strong, so we will probably see an increase both in the Raw Materials Surcharge and in the base price. We will probably see an increase somewhere around $20/nt ($22/mt or $1.00 cwt.). June prices for domestic rebar still range from $27.50 cwt. to $28.00 cwt. ($606/mt to $617/mt or $550 /nt to $560/nt). These are base prices, ex-mill. Though it would appear that import prices are near or at domestic level pricing, many of the smaller domestic sizes pack hefty extras. Extras change from one domestic producer to another and vary depending on bar size, grade, and length. #3's (9.5 mm) fetch the highest extra, usually about $4.00 cwt. ($88/mt or $80/nt).