Demand conditions within the US domestic rebar market are not expected to improve in the remainder of the year, with scrap expectations for December having little effect on prices. Early predictions for scrap point to a modest $10-$20/mt price increase, although some rumors have emerged of a possible $20-$30/mt increase. However, sources tell SteelOrbis that US rebar mills have “little appetite” to raise prices considering the current state of demand, especially as lower import offers are heard in the market.
Individual deals beneath the average US rebar spot price range are becoming less common, sources say, but caution that stability might not necessarily lead to an uptrend. “Mills want higher prices, sure,” one source said. “But they need to be sure they’ll get them before trying anything.” As such, US domestic rebar prices are expected to continue trending in the range of $30.50-$31.50 cwt. ($610-$630/nt or $672-$694/mt) ex-Midwest mill and $31.50-$32.00 cwt. ($630-$640/nt or $694-$705/mt) ex-East coast mill.