Despite predictions last week that another US domestic rebar price increase might be on the horizon, the latest expectations for the US domestic scrap market in February have moderated hopes for higher rebar prices. Sources tell SteelOrbis that it’s almost certain US scrap prices will drop by about $10/mt next month, which would leave US rebar mills with little leverage to announce an increase.
Additionally, while early US steel import data indicate a rise in US import rebar arrivals in January (43,206 mt in import permits as of Jan. 21) compared to December (27,977 mt in permits), demand for import rebar is reportedly not robust and sources say that rebar buyers in the US “aren’t really using import offers to push domestic prices downward.” The combination of the scrap and import trends will likely leave US domestic rebar in a neutral trend in the near-term.
As such, US domestic rebar spot prices are unchanged this week in the range of $32.50-$33.00 cwt. ($650-$660/nt or $717-$728/mt) ex-mill in the Midwest, and $33.50 cwt. ($670/nt or $739/mt) ex-mill on the East Coast.