Rebar consumers ‘smell blood,’ sit out of market
May 24, 2013 | 12:55 PM
| Samuel Frizell
NEW YORK Activity in the domestic reinforcing bar market continues to be tepid as negative scrap sentiment deflates ordering activity and construction projects remain slow to gain traction.
According to sources, buyers are hesitant to order material amid market speculation that scrap pricesand, hence, steel pricescould drop next month (amm, com, May 24). As a result, most appear to be keeping their inventories slim, buying only what they need to meet immediate requirements.
"If we went in and bought strong thinking (scrap) was going up like a bastard and then it dropped, wed be screwed," said a Northeast rebar fabricator source. "We havent done any hedging because of the uncertainty in this stupid market."....
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