NEW YORK Rebar prices were unchanged this month for most buyers after months of price stagnancy, and market sources are divided about whether the rebar trade case against Turkey and Mexico will have an immediate effect on pricing.
It is unclear if domestic mills will be able to raise their rebar prices in the short term after the trade petition filed Sept. 4 against Turkish and Mexican rebar imports (amm.com, Sept. 4).
Rebar prices have remained at around $645 per ton ($32.25 per hundredweight) for three and a half months, but buyers reported pries for some rebar sizes at certain mills have increased since the case was filed.
The threat of anti-dumping duties will cause Turkish product to diminish in the market, traders and rebar buyers said (amm.com, Sept. 9), however it is unclear whether the domestics will be able to take advantage of the recaptured market share immediately by raising prices across the board.
With mediocre demand in many regions and thin backlogs, some rebar buyers said the market wouldnt support an increase in the short term.
"The only way in my mind they could justify an increase is if they had an uptick in volume and they saw a purported shortage," a rebar fabricator in the Midwest said.
Moreover, with AMMs Chicago shredded automotive scrap price again falling about $10 this month, some rebar buyers might even expect a decrease from their suppliers.
But with rebar prices increasingly divorced from scrap prices (amm.com, May 5) , the mills might use the threat of duties to raise prices as they recapture domestic market share.
"Nobody wants to buy futures from Turkey or Mexicotheyre all worried about supply interruptions. Domestics are already getting bullish, and Im expecting a price announcement imminently," a rebar distributor in the Midwest said. "Why do you think they pulled away from the scrap surcharge? Now it gives them full reign to bring prices up."