US rebar mills are finding no trouble pushing through the full $0.75 cwt. ($17/mt or $15/nt) price increase for February shipments, even as import tons continue to flow into US ports--many on position, according to traders. But because the price spread between on-the-ground import prices and new domestic orders is not that wide--by only about $1.00-$1.50 cwt. ($22-$33/mt or $20-$30/nt)--some in the market believe that US mills could've gotten away with a $1.50 cwt. ($33/mt or $30/nt) increase, as Gerdau Long Steel North America originally announced before quietly retracting in the face of Nucor's undercutting $0.75 cwt. move. However, it is unlikely that mills would try to recoup some of that missed opportunity with a moderate increase next month if shredded scrap goes sideways (as early speculation predicts), and for now US domestic spot prices are unchanged this week in the range of $37.50-$38.50 cwt. ($827-$849/mt or $750-$770/nt) ex-mill.
As for new import orders, sales prices for Turkish rebar in the US have not dropped even though the market overseas is softening. Traders tell SteelOrbis that Turkish mills expect to pay more for US scrap when they re-enter the market soon, which would stabilize the downward trend in rebar prices, if not raise them, making traders cautious with their offers to US buyers and sticking to the price range of $34.50-$35.50 cwt. ($761-$783/mt or $690-$710/nt) DDP loaded truck in US Gulf ports. Meanwhile, interest is mild for Mexican rebar, with offers standing firm at $37.00-$38.00 cwt. ($816-$838/mt or $740-$760/nt) DDP loaded truck delivered to US border states. However, sources tell SteelOrbis that deals beneath the range can be found as Mexican mills react to the slightly-lower Turkish positions currently available.