US rebar market - Modest price hikes around the corner

The pricing trend for both domestic and import rebar is still slightly up, though we have not seen any major increases since last week. The US market is still experiencing strong demand for rebar, and it is likely that we will see another price increase in June. Domestic rebar offers for May delivery range from $25.50 cwt. to $26.00 cwt. ($562 /mt to $573 /mt or $510 /nt to $520 /nt) FOB mill. 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. Also, the trend of domestic rebar consolidation continues with Ameristeel buying Sheffield Steel and Nucor buying Connecticut Steel. On the import side, there is still some forward momentum in the Turkish market, though the home market has slowed down a bit. Scrap prices have decreased slightly in that region, but cheaper rebar numbers from Turkey are not readily available. Mills are still aiming for higher billet and rebar prices, however, those higher prices haven't translated to higher import offers to the US distributors yet. Also, there are some lower-priced Asian offers now in the Houston market. On the whole, import rebar offers range from $24.75 cwt. to $25.75 cwt. ($546 /mt to $568 /mt or $495 /nt to $515 /nt) FOB, loaded truck, in US Gulf ports.