NEW YORK The
rebar market is in a lull coming off the Independence Day
weekend, with mill prices flat and activity mostly quiet,
though some sources said they expect a pricing increase before
the end of the month.
"We have slowed down
some. Were working through our backlog faster than
were replacing it," said a Midwest rebar buyer.
The mills are still
selling Grade 60 No. 5 rebar at about $645 per ton ($32.25 per
hundredweight) f.o.b. mill, roughly on par with prices
throughout June and July. Nucor recently announced it is
holding net transaction prices flat in July (
amm.com, July 1) despite an increase in shredded
automotive scrap prices.
Some sources said they
were expecting an increase in prices later this summer,
they might wait until (July) 31," to raise prices, said a
second rebar buyer in the Midwest. "They might just say screw
it and wait until the last possible second. I think
theyre going to hold their ground until the end of the
The first buyer
agreed, forecasting an August 1 increase. "Im
anticipating that they are going to raise their prices August
1; that would be my guess. Somehow, it wouldnt surprise
me if (prices changed) before the week is out. Im
thinking $15 to $20 margins," he said.
Demand has been soft,
with heavy rain discouraging construction and slowing down
rebar purchases, sources said. The summer has also brought a
lull in activity as companies take vacations and ease
purchases, weighing down an already tepid market.