After easily securing $2.50 cwt. ($55/mt or $50/nt) in price increases last month, US domestic rebar mills are not eager to give up their gains in the face of downtrending scrap. As such, sources tell SteelOrbis that mills will not follow this month's shredded scrap price decline of around $30/long ton in the Midwest. The most likely scenario will be a $1.00 cwt. ($22/mt or $20/nt) transaction price decrease for rebar, but there is even a chance that mills will aim for a sideways trend and keep prices level. In the event of such a move, sources expect that mills will be negotiable with larger customers, but because they see the scrap downtrend as temporary, they will be firm with most customers regarding spot prices. Until mills make an announcement, US domestic rebar spot prices remain in the range of $34.50-$35.50 cwt. ($761-$782/mt or $690-$710/nt) ex-mill.
As for imports, Turkish mills have finally snapped after weeks of holding on to their export rebar price range--the pressure of declining scrap prices and competition with China (not so much in the US, but in other traditional markets) became too much, and CFR prices into the US Gulf plunged $30/mt just this week. However, traders have not exactly lowered their sales prices in the US, mainly because they have not had enough orders to make a firm, adjusted range. Sources tell SteelOrbis that US buyers are waiting for Turkish rebar prices to drop further, and until they do--and order activity picks up--the unadjusted offer range will remain at $32.00-$33.00 cwt. ($705-$728/mt or $640-$660/nt) DDP loaded truck in US Gulf ports. Mexican rebar offers, meanwhile, are also unchanged this week, although no major changes to the offer range of $32.00-$33.00 cwt. DDP loaded truck delivered to US border states is expected in the near term.