With monthly US domestic scrap prices settling this week at about $35/mt lower than September prices, US domestic rebar mills are under pressure to offer deals, but so far, sources report a sustained tight grip on spot prices. Demand is currently decent enough for mills to maintain leverage over prices, but some sources say that won’t last long, especially if import offers continue to drop.
Overall uncertainty in the market has many US rebar buyers reluctant to book import orders, preferring the short lead-times of US mills, but if the margin between domestic and import prices widens much further, sources say buyers might be more willing to take the risk.
This week, US domestic rebar prices have maintained stability in the range of $31.00-$32.50 cwt. ($620-$650/nt or $683-$717/mt) ex-mill in the Midwest, and $32.00-$33.00 cwt. ($640-$660/nt or $705-$728/mt) ex-mill on the East coast, although sources say transactions on the high ends of both ranges are becoming less frequent.