Expectations of a slight US domestic scrap price increase in December has become a “beacon of optimism” within the US domestic rebar market, as mills are reportedly eager to cut back on dealmaking while continuing to fill order books before the quarter is up. A slight $5-$10/ton increase in scrap prices might not be enough for rebar mills to announce a formal price increase, sources say, but it will be enough to establish a “firm bottom” for domestic spot prices.
The only market factor standing in rebar mills’ way, according to sources, is continued lackluster demand, but that is reportedly “a problem for next week.” This week, the market is generally quiet ahead of the Thanksgiving holiday, leaving US domestic rebar prices unchanged in the range of $33.00-$34.00 cwt. ($660-$680/nt or $728-$750/mt) ex-mill.