US domestic rebar prices were reported “largely stable to higher” this week even as low local demand continued and cheaper imports were not expected to displace “aggressive “domestic steel mill pricing schemes aimed at maintaining cash flows and market share, market insiders told SteelOrbis this week.
Stable to slightly higher end-week pricing follows this past week, when talk of low continued mid-month demand and the lack of a spring “construction season” dominated conversations, prompting some spot market values, especially the US East Coast, to move sharply lower on the week.
Midwest domestic rebar spot prices are assessed $1.00 cwt ($22.05/mt of $20.00/nt) higher at $40.00-$41.00 cwt ex-mill ($882 to $904/mt or $800-$820/nt) against previous assessments at $38.00-$41.00 cwt ($838-$904/mt or $760-$820/nt). Following last week’s nearly 11% price slump on the US East Coast, this week’s price increase represents the first price reversal in two weeks, when prices averaged $42.50-$43.50 cwt. ($937-$959/mt or $850-$870/nt) ex-mill.
“Domestic rebar values are largely stable to numbers we saw this past week,” said one Midwest rebar market insider. “There’s still not a lot of imports coming into the US Gulf because of low domestic pricing, though those that can buy substantial amounts are buying imports at $37.00-$38.00 cwt ($816-$838/mt or $740-$760/nt) to keep themselves active.”
“Rebar prices remain stable with uncertainty into the future,” said another US Gulf Coast-based steel market insider commenting on his view of “scant” weekly trade. “We’re hearing now that June (shredded) scrap is expected to come in sideways to $10-$20/mt lower.”
At last report, US East Coast rebar pricing regained all of the previous week’s decline, posting a $2.00 cwt increase ($44.00/mt or $40/nt) to $39.00-$41.00 cwt ($860-$904/mt or $780-$820/nt) versus previous assessments at $36.00-$40.00 cwt ($794-$882/mt or $720-$800/nt). Imports are discussed US East Coast at $37.00-$38.00 cwt loaded truck.
In Houston, contacts say rebar exports from Mexico remain a non-starter from a supply standpoint, as local Mexican mills wait for lower local steel pricing to develop to avoid potential anti-dumping allegations from the US. Pricing in the local Houston market remains flat to a week ago at an average $40.50 cwt ($893/mt or $810/nt), market insiders said.
Looking at other long products, in the wide flange beams market, insiders commented that mills have been “very aggressive “on pricing though values remained stable from previous levels at $47.50 cwt ($1,047/mt or $950/nt). Overseas pricing is discussed in the “high-40s” market insiders said.
Merchant Bar Quality steel (MBQ) is discussed flat at $49.00-$51.00 cwt. ($1,080-$1,124/mt or $980-$1,020/nt) with imports from Mexico and Canada meeting contract requirements, insiders said.
