Posted on 19 Jun 2019
The US rebar market continues to weaken as soft scrap prices maintain downward pressure on domestic rebar prices, Kallanish reports.
Sources are reporting prices for #4 rebar in 20-foot lengths at $660-680/short ton, ex-works. This is down $20/st from a plateau of $680-700/st in April and May.
Some sources say they expect rebar to fall as low as $640/st this month based on falling scrap prices. One Midwest buyer is taking a wait-and-see position.
“$640/st may be achievable, but there is no real interest because there is still the perception of a $20/st scrap drop coming next month,” he says. "Inventories and supply are holding prices hostage.”
“I’ve not seen domestic at $640/st yet. The lowest that I have seen out of Columbia City, Indiana, the new SDI mill is at $660/st,” says a Chicago dealer.
In a related story, Nucor released third quarter guidance projecting reduced order rates and profits saying, “Increased domestic supply and a declining scrap price environment have led to aggressive inventory management by our customers."
Kallanish reports on rebar prices weekly on Tuesdays.
