As predicted last week, US domestic rebar mills continued their push for higher market prices with another price increase. The $1.25 cwt. ($25/nt or $28/mt) price bump announced December 1 marks the third announced increase in five weeks, with each absorbing instantly into the market. New spot prices for US domestic rebar are now in the range of $28.75-$30.75 cwt. ($575-$615/nt or $634-678/mt) ex-mill, and sources report that deals for larger customers “aren’t as available as they used to be.”
Despite the consensus last week that another price increase was imminent, many in the market initially believed it would be the last of the year, considering the traditional slowdown in activity as the holidays approach. However, some sources tell SteelOrbis that considering scrap prices could settle up by as much as $50/ton this month—according to the latest market expectations—it’s “not impossible” to imagine mills sliding through one last price push before quarterly results wrap up. And because mills have the success of previous increases backing them up, a final rebar price increase for the year could be for a higher amount than its predecessors, according to sources’ predictions.