A worse-than-expected January in terms of rebar demand throughout the US has led to some vulnerabilities, especially on the East coast, where winter weather has been particularly harsh. Sources tell SteelOrbis that mills are offering deals to customers on the East coast, a trend that could spread to the Midwest if demand doesn’t show signs of picking up soon.
However, sources do not believe such deals will be formalized with a price decrease announcement, especially considering US shredded scrap prices increased this month. The one advantage mills have right now, sources say, is that buyers aren’t very interested in rising import offers at the moment, and are still turning to domestic mills for most of their supply needs.
As such, sources don’t believe the currently soft trend in US rebar prices will last very long. This week, US domestic rebar prices on the East coast are being heard on average $1.00 cwt. ($22/mt or $20/nt) lower than last week, now ranging from $46.00-$47.00 cwt. ($1,014-$1,036/mt or $920-$940/nt) ex-mill. East coast prices are now around the same as Midwest prices, also ranging from $46.00-$47.00 cwt. ($1,014-$1,036/mt or $920-$940/nt) ex-mill, unchanged in the last week.