The Section 232 tariffs are set to be effective as of March 23, but US domestic rebar mills are already taking full advantage of the import situation by announcing a significant price increase. Gerdau, CMC, and SDI all announced a $2.50 cwt. ($50/nt or $55/mt) effective-immediately price increase, although Nucor has not yet responded. Sources tell SteelOrbis that Nucor is considering whether to match the $2.50 cwt. increase or go higher, indicating the company’s substantial confidence in the market’s ability to absorb higher prices.
Already, US domestic rebar spot prices have increased from last week’s range of $38.00-$39.00 cwt. ($760-$780/nt or $838-$860/mt) ex-mill. Including this week’s increase, spot prices are now in the range of $40.50-$41.50 cwt. ($810-$830/nt or $893-$915/mt) ex-mill. And if Nucor does announce a larger price increase than its fellow US rebar mills, sources say it likely will not be the last price increase the market sees in the near-term.