Even though shredded scrap prices have not increased in the last three months, sources say US domestic rebar mills are still bullish enough about the market to keep transaction prices firm; the just-announced $0.50 cwt. ($11/mt or $10/nt) drop in mills' raw materials surcharge (RMS) for May shipments was countered with an equal increase in rebar base prices, resulting in a neutral net price move. Additionally, rumors that scrap prices could possibly reverse in the near-term, combined with strengthening demand and constrained supply might lift rebar prices in the coming months, according to sources. In fact, mills are already holding firm to the general rebar spot range of $36.75-$37.75 cwt. ($810-$832/mt or $735-$755/nt) ex-mill, and are reportedly very reluctant to dispense deals below--even as customers exert pressure by pointing to soft raw material prices.
As for imports, Turkish mills are looking to increase export prices on the heels of an uptrend in their domestic market, but traders in the US tell SteelOrbis that demand for imported product is not strong enough to justify raising their sales prices. In fact, many traders are still stuck with unsold positions at the port, which has only exacerbated their attempts to book future orders at prices around $33.50-$34.50 cwt. ($739-$761/mt or $670-$690/nt) DDP loaded truck in US Gulf ports. Meanwhile, Mexican mills have not increased activity to the US in the last week, keeping prices level at $33.00-$34.00 cwt. ($728-$750/mt or $660-$680/nt) DDP loaded truck delivered to US border states--a range that is likely to remain unchanged for a while considering US mills' neutral price move.