Participants in the merchant bar market do not expect a price
hike following a recent $10-per-ton
(50-cents-per-hundredweight) rebar increase by domestic mills
amm.com, Oct. 15).
"I dont expect
anything on merchants. I think rebar is only going up because
of the anti-dumping cases," a source at one East Coast
distributor said, referring to a trade complaint filed recently
against Mexican and Turkish rebar producers.
"It might be (the
dumping cases), it could be that scrap is getting a little bit
of strength and construction is getting just a little bit of
legs now, at least residential. Its probably a
combination of all three factors," a Midwest distributor source
said of the rebar hike.
In contrast, merchant
bar demand remains tepid.
The Midwest source
said he would be surprised if merchant bar mills raised prices.
"Demand still hasnt changed."
It was the first rebar
increase since mills divorced pricing from a raw material
surcharge earlier this year (
amm.com, June 6).