The US rebar market has continued to be very quiet since last week, and market players remain concerned about when their business will finally start to improve.
Some distributors and fabricators comment to SteelOrbis that after the minor early summer uptick that the market underwent as the economy started to bottom, business has since slowed again, and is now back to pre-June levels of activity. One distributor even commented that conditions are as bad as they were right after September 11, 2001.
Still, others remain somewhat hopeful that the market will soon start to improve again along with the economy and certain other steel products. Despite the continued soft business conditions, US rebar mills are determined to do all they can to maintain their prices, as their raw material costs have risen in recent months, and other US long products, like wire rod, are showing some slight signs of improvement. Also, there is very little import competition to drive prices downwards.
US domestic offers remain at a range of approximately $24.50 cwt. to $25.00 cwt. ($540/mt to $550/mt or $490/nt to $500/nt) ex-mill, and although Nucor is officially keeping prices stable in October, mills continue to cut deals in some cases and distributors are willing to sell material at slightly under the domestic mill level. Overall, the US pricing trend continues to be stable due the steady raw material costs and lack of viable import offers.
On the import side, there is also very little rebar business transpiring, and longs traders are generally inactive on rebar. Import offers from Mexico still range from approximately $23.50 cwt. to $24.50 cwt. ($518/mt to $540/mt or $470/nt to $490/nt) delivered to Texas, though Mexican mills are not pursuing US business too aggressively.
Import Turkish offers are still not a factor, as they are still offered at an uncompetitive level of $26.00 cwt. to $27.00 cwt. ($573/mt to $595/mt or $520/nt to $540/nt) duty-paid, FOB loaded truck in US Gulf ports. Overall, mport rebar prices continue to trend sideways, pending Turkey's price move after Ramadan ends this week.
