NEW YORK Price
increases by U.S. rebar mills of between $10 and $20 per ton
have yet to filter into the marketplace as buyers await a
Rebar buyers largely
havent yet paid the recent round of increases by domestic
mills as they wait to see where prices move.
"Things are moving
fast. The rebar mills have been skirting about the issue, but
theyre going to have to do something. But I cant
say exactly what," one mill source said. "How it shakes up,
only time will tell."
exactly where the market will fall, but sentiment points toward
buyers paying at least $20 per ton more, mills and buyers
A second mill source
agreed, noting that "$30 (per ton) is a significant scrap
increase that cant just be glanced over. (The higher
increases) are more on the right track. ... For right now,
itll settle in between ($10 and $20 per ton) and within
the next 30 days we might see another $10 or $20 increase."
For now, most rebar
buyers are still paying around $650 per ton ($32.50 per
hundredweight) f.o.b. the mill, but many buyers said they
expect prices to rise.
Demand has been fairly
strong going into year-end, with buyers rushing to bring in
their orders before poor weather hits.
"This is going out due
to an increase in demand, low inventory and low margin on most
of (the mills) steel products, especially rebar.
Theyre basically saying its demand and inventory
levels," one rebar buyer said. "That price hike will stick for
prices have risen as well, with Mexican imports up about $20 to
$30 per ton, rebar buyers said.
The market is holding
its collective breath for a consensus among the mills on
pricing, but sentiment was bullish.
"(The mills) were
worried about getting too far ahead. They should have just
waited. They shouldnt have jumped the gun," a second
rebar buyer said, noting that the rebar price increases came
beforeand were less thanprice increases on scrap.
"I think they should have gone up $30 (per ton)."
Gerdau Long Steel
North America, Tampa, Fla., led the market Nov. 1 by announcing
a $20-per-ton ($1-per-cwt) increase (
amm.com, Nov. 4), several days before
AMMs scrap prices settled.
Nucor Corp. surprised many rebar buyers Nov. 5 with only a
$10-per-ton (50-cent-per-cwt) increase (
amm.com, Nov. 6). Fort Wayne, Ind.-based Steel
Dynamics Inc. also increased prices $10 per ton (
amm.com, Nov. 6), while Irving, Texas-based
Commercial Metals Co.s CMC Steel Arizona division
announced a $20-per-ton move (
amm.com, Nov. 6).
AMMs Chicago shredded automotive scrap price
assessment rose $31 per ton
(amm.com, Nov. 7), leading buyers to believe there
might be another round of increases ahead.