Rolling cycles driving bar mills’ buys

Jan 02, 2014 | 01:03 PM | Samuel Frizell

Tags  rebar, merchant bar quality, rolling cycles, price increases, Gerdau Long Steel North America, bar inventories, steel long products, Samuel Frizell

NEW YORK — Relatively strong demand for reinforcing bar and merchant bar through the end of 2013 is driving new buying patterns at long product mills, with customers required to plan their purchases further in advance and buy more material off the mills’ rolling cycles.

Merchant bar quality and rebar inventories have fallen significantly, depending on region and size, since the third quarter of 2013, according to buyers and mills. This marks a change from previous years, as demand has improved and prices have increased.

"There’s less floor stock. They haven’t wanted to hold large inventories. I don’t see they have the desire to carry inventories," one rebar buyer said.

"Mills don’t have floor stock like they normally do," a second rebar buyer said.Mills have had to carry significant floor stocks in recent years, with demand too tepid to consume enough of the material off the rolling cycles.....

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