Despite a sideways trend in US domestic scrap prices this month and depressed import rebar volumes arriving at US ports, US domestic rebar mills announced another price increase earlier this week, for $1.25 cwt ($25/nt or $28/mt), effective immediately. While the initial consensus in the market is that current spot prices will easily absorb the full increase, some sources say the strong uptrend in US rebar so far this year is “not being applied equally” to buyers.
Adding the full $1.25 cwt. to last week’s reported US domestic rebar prices would increase the spot range to $37.50-$38.50 cwt. ($750-$770/nt or $827-$849/mt) ex-mill. However, sources tell SteelOrbis that “several” larger distributors are paying closer to $34.50 cwt. ($690/nt or $761/mt) ex-mill, and while mills are maintaining the higher range is the “official” range in negotiations, medium-sized distributors could likely negotiate for slightly underneath.