Some US rebar mills bending a bit with price increase

Thursday, 22 November 2012 23:33:35 (GMT+3)   |   San Diego
       

While Gerdau Long Steel North America, which announced an immediate $1.75 cwt. ($39/mt or $35/nt) rebar transaction price increase two weeks ago, is reportedly maintaining a firm grip on the portion of the increase they've managed to push through, sources tell SteelOrbis that other mills are more willing to bend for larger customers.  Overall, the general spot price range for US domestic rebar is still $33.50-$34.50 cwt. ($739-$761/mt or $670-$690/nt) ex-mill, reflecting $1.00 cwt. ($22/mt or $20/nt) of the increase on account of Gerdau's early effective date plus limited inventory at other mills.  But some customers who are willing to place large orders have been reportedly able to secure pre-increase prices from some mills, although there is a strong chance those opportunities will dry up after December 1, when the rest of the mills' increase goes into effect.

Even as the US domestic rebar trend is looking up, the import rebar market is still relatively quiet.  Significant tonnages arrived from Turkey last month (45,291 metric tons according to US import license data, compared to 8,529 mt in September), and traders report some difficulty unloading positions, even at prices slightly under the future offer price range of $31.50-$32.50 cwt. ($694-$717/mt or $630-$650/nt) DDP loaded truck in US Gulf ports.  Interest in Mexican rebar is equally tepid, and thus offer prices have not moved from last week's range of $30.50-$31.50 cwt. ($672-$694/mt or $610-$630/nt) DDP loaded truck delivered to US border states.


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