After Gerdau Long Steel North America issued a $1.00 cwt. ($20/nt or $22/mt) transaction price increase late last week, many in the US domestic rebar market assumed that Nucor would follow suit with either an identical increase, or perhaps a larger increase to take advantage of uptrending scrap prices and solid demand. But in an unusual move, Nucor announced a meager $0.50 cwt. ($10/nt or $11/mt) price increase late Tuesday, followed soon after by Steel Dynamics, Inc. While many sources hope Gerdau will stand their ground and keep their higher increase in place, others said executives were already discussing whether to adjust it to remain competitive. In the meantime, spot prices are in limbo--the general consensus seems to be that spots are up at least $0.50 cwt. from last week, bringing the range to $32.50-$33.50 cwt. ($717-$739/mt or $650-$670/nt) ex-mill as long as the remaining $0.50 cwt. from Gerdau is up in the air.
Until the domestic price situation is sorted out, imports are still a viable option despite the ITC's early ruling last Friday that Turkish and Mexican rebar caused injury to the US market, thus moving the trade case forward. Many traders are continuing to offer rebar from both contested sources, even as their price trends point up. Turkish mills have already raised their rebar offers to the US, and while the increase has not made its way into the US import sales price range of $30.00-$31.00 cwt. ($661-$683/mt or $600-$620/nt) DDP loaded truck in US Gulf ports, considering the US domestic trend, an uptrend will become apparent in the next week or so, according to sources. Mexican offers are also stable this week at of $30.00-$31.00 cwt. DDP loaded truck delivered to US border states, as are offers from Korea at $32.00-$33.00 cwt. ($705-$727/mt or $640-$660/nt) DDP loaded truck in West Coast ports.