Although the possibility of reduced imports following Section 232 investigation results favoring US domestic steel producers has now been shelved, the US merchant bar market still has reasons to be optimistic about prices, according to sources. The steady upward trend in scrap prices over the last few months is expected to continue in September, and while demand varies depending on the specific product, the merchant bar market overall is “decent enough,” sources say. And considering the “increase fever,” as one source put it, seen with other US domestic steel products in recent weeks, a price increase could be on the horizon for merchant bar.
However, sources are quick to note that the last announced US domestic merchant bar price increase in April was quickly rescinded because “the market did not support it,” according to a letter from Steel Dynamics, Inc. to customers. Some sources say the increase had a “good chance” of absorbing into the market, but after Nucor opted to not follow SDI and Gerdau with a similar increase, the price move was “dead in the water.”
And while discounting to major distributors is “still a problem,” according to some sources, others believe the time is right to push merchant bar prices upward after months of stagnancy for most buyers. Until anything is announced, however, US domestic merchant bar list prices are still as follows:
