There are rumblings that domestic rebar prices, which dropped in April, may see further slippage, Kallanish reports. As scrap prices continue to fall, some sources foresee downward pressure on US rebar.
“With scrap dropping $30/short ton last week, everyone has been in a holding pattern on buying futures,” says a Midwest source. “I would not be surprised to see rebar getting pushed into the neighbourhood of $660/st, maybe even this month.”
The domestic market is also cautiously watching imports in the wake of the reduction in tariffs on Turkish rebar last month. Shipments from Turkey have not yet hit the US market.
“No shipments of rebar from the Turks as of yet. It is too early for actual shipments. Unexpectedly, there are still no validated quotes and certainly no aggressive quoting coming out of Turkey,” says an East Coast longs buyer.
As 2019 approaches the halfway mark, sources are coming in with mixed reviews on the market.
“The first half of the year was and continues to be below average tonnage movement for us. This has been a weak market. I expect prices to continue to fall, but there are no new announcements from domestic mills.” says one Pennsylvania supplier.
“This year is shaping up to be a good one for our fabrication business and remains positive for at least the next 90 days, however, the distribution side of things are still slow,” says another Midwest broker.
Kallanish reports domestic #4 rebar in 20-foot lengths at $680-$690/st.