Although some sources predict US domestic rebar mills will use potentially higher scrap prices next month to justify firming up rebar prices, other sources note other market factors that might complicate such an effort. As ex-mill rebar shipments start to follow a seasonal decline, sources say rebar mills will need to “run more to keep costs per ton down.” As such, mills might not be willing to announce a formal price increase in conjunction with a scrap price increase.
So far, predictions for higher scrap prices in November have not mitigated the vulnerability of US domestic rebar offers. Spot prices are still “quite soft,” sources say, with more transactions taking place at the lower end of the regional price ranges and fewer transactions taking place at the high end. In fact, Midwest and East Coast rebar price ranges have eroded by $0.50 cwt. ($10/nt or $11/mt) on the top end in the last week, bringing spot prices down to $30.50-$31.50 cwt. ($610-$630/nt or $672-$694/mt) ex-Midwest mill and $31.50-$32.00 cwt. ($630-$640/nt or $694-$705/mt) ex-East coast mill.