Although the US domestic rebar market continues to trend stable under slow seasonal activity, sources tell SteelOrbis that buyers are keeping their eyes on future developments before making any major purchases. An expected downtrend in US domestic scrap prices has large-scale rebar buyers in the US reportedly wondering if they can leverage the trend in negotiations with mills and pull the lower end of the wide US rebar spot price range downward.
Already, larger buyers are being offered US domestic rebar in the range of $39.00-$39.50 cwt. ($780-$790/nt or $860-$871/mt) ex-mill, while small to medium-sized buyers are still quoted in the range of $41.50-$42.50 cwt. ($830-$850/nt or $915-$937/mt) ex-mill.
However, sources say that any vulnerability in spot prices due to the scrap trend is not likely to last—by early fall, already-arrived import inventory should be low and US rebar mills will be eager to raise prices again. The only market factor that could prevent another price increase, sources say, would be some sort of resolution—or firm direction, at least—in the ongoing lawsuits and Congressional actions aimed at revoking Section 232 tariffs entirely.