As expectations for a shredded scrap increase rise to $50/long ton in some regions, sources tell SteelOrbis that there is a strong chance that US rebar mills will take the opportunity to hike transaction prices by nearly the full scrap amount, especially considering that last month's rebar prices were most likely the "bottom" for the rest of the year. Some distributors have speculated that mills will raise rebar prices by $2.00 cwt. ($44/mt or $40/nt), even if they think pushing through the full amount won't be an overwhelming success. Other sources believe a $1.25 cwt. ($28/mt or $25/nt) increase is more probable, as mills would have no problem getting all of it from even their largest customers. Until scrap settles and the trend becomes clear, however, US domestic rebar spot prices are still in the range of $32.50-$33.50 cwt. ($717-$739/mt or $650-$670/nt) ex-mill. Sources report a decent amount of pre-increase purchasing activity, resulting in most transactions taking place on the upper end of the spot range.
As for imports, sales prices of Turkish rebar have dipped slightly in the US, even though scrap prices are rising in Turkey. Traders report little interest even in lower Turkish offer prices of $30.50-$31.50 cwt. ($672-$694/mt or $610-$630/nt) DDP loaded truck in US Gulf ports--down $0.50 cwt. ($11/mt or $10/nt) in the last week--although interest in Mexican rebar offers is slightly stronger. Mexican mills will undoubtedly raise rebar offer prices to the US once US domestic prices rise; but for now, customers can still book for $29.50-$30.50 cwt. ($650-$672/mt or $590-$610/nt) DDP loaded truck delivered to US border states.