Although US domestic rebar prices lifted on the heels of an early January $2.50 cwt. ($55/mt or $50/nt) mill price increase, sources say higher prices are no longer sustainable if US shredded scrap prices drop by $60/ton as expected this month. As a result, US rebar mills will most likely revoke the January increase and return market prices to “comfortably below” the $40.00 cwt. ($882/mt or $800/nt) ex-mill level.
For now, US domestic rebar prices have not seen much movement in the last week, and spot prices are generally unchanged. However, sources point out that quotes at the higher end of the regional ranges are “not really viable” anymore. Until scrap officially settles, US domestic rebar prices are still roughly at $39.00-$41.00 cwt. ($860-$904/mt or $780-$820/nt) ex-mill in the Midwest, and $38.00-$39.00 cwt. ($838-$860/mt or $760-$780/nt) ex-mill on the East Coast.