Just two weeks after dropping rebar prices by $1.00 cwt. ($22/mt or $20/nt), US domestic rebar mills followed the uptrending scrap market by announcing an immediate $1.00 cwt. increase in base prices this week. The move was a surprise to many; deals for slightly below the spot range had been reported shortly after the initial decrease, and any reversal in the price trend wasn't expected to be announced until August scrap prices were settled. Further, sources tell SteelOrbis that spot prices are already moving above the range of $33.00-$34.00 cwt. ($728-$750/mt or $660-$680/nt) ex-mill (which includes the $1.00 cwt. increase), as mills are expected to announce another $1.00-$1.50 cwt. ($22-$33/mt or $20-$30/nt) transaction price increase as early as next week.
Foreign rebar mills are closely following the situation in the US, and traders expect import prices to reflect the US domestic trend soon. For now, Turkish rebar offer prices are still in the range of $30.00-$31.00 cwt. ($661-$683/mt or $600-$620/nt) DDP loaded truck in US Gulf ports, and Mexican offers are still ranging from $30.50-$31.50 cwt. ($672-$694/mt or $610-$630/nt) DDP loaded truck delivered to US border states, both unchanged over the past week. However, even if both import rebar sources raise prices along with US mills, traders are not confident that US buyers will be that interested in stocking up for the future. Additionally, there is still imported rebar available at the ports--traders eager to unload might not raise offer prices on those positions, making them more attractive than future orders.