After plunging $5.50 cwt. ($121/mt or $110/nt) last month in an effort to clean up the rampant discounting in the US domestic merchant bar market, mills followed the strong August scrap uptrend with a $2.50 cwt. ($55/mt or $50/nt) transaction price increase for September shipments. However, sources tell SteelOrbis that even when it became apparent that an increase was imminent, there was not an uptick in purchasing activity ahead of the announcement. Demand for merchant bar in the US remains steady, with most customers continuing to buy on an as-needed basis and avoiding substantial inventories. And because the discounting clean-up was a successful endeavor, most distributors will be paying very close to published mill prices of $41.50-$42.95 cwt. ($915-$947/mt or $830-$859/mt) ex-mill for September shipments.
Imports merchant bar offer prices from Turkey, meanwhile, have increased by approximately $1.00 cwt. ($22/mt or $20/nt) in the last month on the heels of higher scrap prices, with offers now in the range of $39.00-$40.00 cwt. ($860-$882/mt or $780-$800/nt) DDP loaded truck at US Gulf ports. However, traders tell SteelOrbis that the increase is not yet "set in stone," and certain buyers might be able to get imported merchant bar for slightly less.