NEW YORK Rebar mills have held on to an earlier $10-per-ton increase with recent orders, sources said, and buyers anticipate further increases next month.
Domestic rebar mills sent out price increase letters earlier this month, with Tampa, Fla.-based Gerdau Long Steel North America raising prices $30 per ton ($1.50 per hundredweight) and Charlotte, N.C.-based Nucor Corp. increasing prices $20 per ton ($1 per cwt).
Some of the increase appears to be taking hold, but the market has not yet absorbed the full uptick. "Weve had some increases, but it doesnt seem to be going the whole way," one rebar buyer said.
Nucor increased its prices in two stages, with a $10 increase announced Oct. 14 and another $10 hike announced Nov. 5 (amm.com, Nov. 6).
"Nucor went up $10 for orders shipped by (Nov. 8), and to the best of my knowledge that has stuck. Everything shipped from that date, they have charged that amount up," a second rebar buyer said. "Their next increase of $10 takes effect and I have until the end of the day (Nov. 27) so Im shipping material I had previously ordered. I have not yet paid the second half of the increase. Im guessing itll hold."
Buyers are anticipating longer lead times and supply shortages in December, and outages at certain mills may effectively reinforce the price increases (amm.com, Nov. 13). The mills have little inventory on the ground, and in many cases are asking customers to purchase off of rollings, where supply is limited partially due to planned maintenance.
"The new prices are all in effect. Thats $20 per ton. Because youve got Thanksgiving Day week some trucking companies dont ship, its hard to get anything out, and the new prices are all in effect," a third rebar buyer said.
For now, most rebar buyers are paying around $650 per ton ($32.50 per cwt) f.o.b. mill.