As expected, US domestic rebar mills did not drop rebar transaction prices by the full $40-$50/long ton drop in shredded scrap prices this month. In order to maintain some semblance of stability in the market, mills only decreased prices by $1.00 cwt. ($22/mt or $20/nt), bringing spot prices into the range of $32.00-$33.00 cwt. ($705-$728/mt or $640-$660/nt) ex-mill. In contrast, long product mills dropped beam prices by $1.50 cwt. ($33/mt or $30/nt) and merchant bar prices by an astounding $5.50 cwt. ($121/mt or $110/nt), indicating that mills are more confident in their ability to keep rebar prices relatively stable. However, customer pressure in a low-demand environment could nevertheless push rebar spot prices lower, just as it did after last month's similar price decrease.
Import prices have also softened in the last week, with Turkish offer prices decreasing by $0.50 cwt. ($11/mt or $10/nt). The new range of $30.00-$31.00 cwt. ($661-$683/mt or $600-$620/nt) DDP loaded truck in US Gulf ports is not garnering significant attention, however, as product from Mexico is slightly more attractive. Offer prices from Mexican mills are still in the "official" range of $30.50-$31.50 cwt. ($672-$694/mt or $610-$630/nt) DDP loaded truck delivered to US border states, but traders tell SteelOrbis that they are able to bid for sub-$30.00 cwt. orders with success.