NEW YORK Rebar
market participants reported an uptick in activity in advance
of expected price increases at the mills with a substantial
markup in scrap tags driving the market out of its winter
"Phones are busy this morning now that the numbers are up," one
rebar distributor said. "For me, this is Christmas come
buying price for shredded automotive scrap in Chicago settled
$35 per gross ton higher this past week (
amm.com, March 7). With most mills raw
material surcharges for rebar based on that price, several
market participants told AMM that they expect rebar
prices to increase at least $20 per ton.
"It needs to go up," one rebar
fabricator said. "But I think its going to be a
feeling-out process to see whether its going to
Rebar trading activity was up
this past week, and several market participants in the Midwest
reported a surge in orders as customers tried to secure deals
ahead of the scrap uptick.
"Everyones hearing the
same thing, and theyre getting antsy from an ordering
standpoint," the distributor said. "The scramble is on to beat
the increase. ... They want to bite the bullet and order."
There has been little change in
the rebar market for several months, and sources welcomed the
thawing as activity heats up.
"If, all of a sudden, we have a
$20 increase and our inventory goes up by $20 a ton,
thats a good thing," a second rebar fabricator said. "We
all like to see it going up. And were keeping our fingers