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
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."
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.