Although US domestic rebar mills dropped transaction prices by a moderate $1.25 cwt. ($28/mt or $25/nt) last week in response to a heftier $40-$50/long ton decrease in shredded scrap, sources tell SteelOrbis that in anticipation of a scrap turnaround next month, mills are not willing to make any concessions in their pricing policy. Even larger customers, who would normally have leverage to book orders underneath the new $32.50-$33.50 cwt. ($717-$739/mt or $650-$670/nt) ex-mill range are finding it difficult to conclude transactions at even the lower end. Mills are confident that scrap in November will bolster their firm grip on prices, even as demand remains modest at best.
Import prices, on the other hand, have remained steady in the last week, with Turkish offer prices still hovering in the range of $31.00-$32.00 cwt. ($683-$705/mt or $620-$640/nt) DDP loaded truck in US Gulf ports, and Mexican offers holding steady at $30.50-$31.50 cwt. ($672-$694/mt or $610-630/nt) DDP loaded truck delivered to US border states. However, as predicted last week, Mexican mills have not jumped to follow the US domestic price trend, as they correctly assume the US rebar market is bound for an uptrend in a matter of weeks. In fact, traders tell SteelOrbis that offers on the low end of the range are quickly becoming unavailable.