Many in the US rebar market were shocked when Nucor announced a $0.75 cwt. ($17/mt or $15/nt) transaction price decrease last week--Gerdau's $0.50 cwt. ($11/mt or $10/nt) price increase announced the week prior combined with strengthening demand levels led many to believe Nucor would go for a sideways price move at least, if not match Gerdau's increase. However, the reasoning behind the decrease goes beyond the fact that scrap prices declined by $20/lt this month--sources tell SteelOrbis that certain large distributors were getting "sweetheart deals" last month, including exemption from the March-announced $1.25 cwt. ($28/mt or $25/nt) increase. Therefore, the price decrease this month was intended more as a "correction" to the market than an indicator of market weakness. Gerdau was forced to follow Nucor's prices downward, leaving US domestic spot prices now in the range of $34.00-$35.00 cwt. ($750-$772/mt or $680-$700/nt) ex-mill--reflecting the full $0.75 cwt. decrease.
As for imports, rebar offers from Turkey are unchanged this week despite softening in the Turkish domestic market and export market to certain regions. Traders tell SteelOrbis that they can barely sell at the low end of the current offer range of $29.50-$30.50 cwt. ($650-$672/mt or $590-$610/nt) DDP loaded truck in US Gulf ports, but they are reluctant to narrow their margins further. Meanwhile, Mexican rebar mills are reportedly willing to work with customers to book orders, so there is a good chance attractive order sizes could book at prices below the current general offer range of $30.50-$31.50 cwt. ($672-$694/mt or $610-$630/nt) DDP loaded truck delivered to US border states.