As predicted last week, the range for US domestic rebar spot prices narrowed this week, by about $0.50 cwt. ($10/nt or $11/mt) on the high end. Most transactions are now falling between $27.00-$29.00 cwt. ($540-$600/nt or $595-$640/mt) ex-mill, and while there are still a few outlier deals out there for beneath the low end of the range, sources say those are becoming increasingly hard to come by as mills attempt to secure a price bottom.
The success of that attempt is being viewed with skepticism by many market insiders, considering the “intense” pressure US domestic rebar mills are currently under from low-priced import rebar positions flooding US ports. Sources say traders are putting a higher priority on clearing inventory than getting the best price, and the option to purchase small import tonnages is cutting into one of domestic mills’ main points of leverage. Already, August import permits are shaping up to be as strong—or stronger—than July tonnage levels, which means mills might not be able to hold onto that low of the spot range much longer.