While snowstorms batter the US Midwest and East Coast, demand for rebar has decreased significantly, yet soon-to-be announced March prices will probably not be affected.
Purchasing activity for domestic rebar has slowed somewhat in the last week, mostly due to harsh winter weather stalling current construction projects and delaying upcoming projects. However, despite the recent price corrections seen in the US rebar market, and the expectation that scrap will trend downward this month, there is a strong possibility that rebar prices will remain neutral for March shipments.
As it is, mills are trying to stand firm on their $37.00-$38.00 cwt. ($816-$838/mt or $740-$760/nt) ex-mill asking prices for February shipments, but SteelOrbis has learned that certain mill-affiliated distributors are selling closer to $35.00-$36.00 cwt. ($772-$794/mt or $700-$720/nt) in order to shed some inventory they still have from December. Unless scrap pricing dips by $30/lt or more this month, mills will probably not react with any substantial price movements, especially considering that early predictions for scrap pricing in March points back upward.
Another factor that has made it hard for mills to push through February prices is the influx of imported rebar that was purchased when prices were low late last year. New orders, on the other hand, are still relatively quiet, with current Turkish offers still in the range of $34.50-$35.50 cwt. ($761-$783/mt or $690-$710/nt) duty paid FOB loaded truck in US Gulf ports.
Across the border, Mexican mills are sticking firm to offers of $36.25-$37.25 cwt. ($799-$821/mt or $725-$745/nt) duty paid FOB delivered to US border states, but they might adjust prices slightly if US scrap decreases as predicted.