Posted on 25 Jul 2024
US domestic rebar prices are lower on-week, weighed down by an uncertain US scrap market, lacklustre business activity and building supplies, Kallanish hears from market participants.
Pricing for US domestic #4 rebar in 20-foot sticks has declined to a new range of $750-770/short ton, from $760-780/st last week. This marks the lowest level since January 2021.
While some market participants expect prices to finally strengthen due to slow inflow of scrap into yards, others do not find this likely due to the continuing slide in hot rolled coil prices amid struggling demand (see Kallanish 22 July).
“We are also hearing that scrap could tick up, but the lack of demand has worsened,” says a mid-Atlantic distributor. “I think that the political uncertainty, which just got more uncertain, is going to have an adverse effect; [it] already is.”
The distributor adds: “Even if scrap ticks up $20-30, even $40/ton, any price announcement will not hold,” adding: “Not right now.”
Weak business conditions persist, and that is keeping downside pressure on rebar pricing.
“Business conditions are lousy and getting lousier, and sales activity has been brutal,” notes a southeastern fabricator.
While market participants indicate inventory de-stocking has taken place, overall demand has fallen at the same time.
“A month’s worth of [rebar] supply [a few months ago] is now equivalent to the amount of four months’ supply,” the southeastern fabricator says.
A source indicates there are “still some [rebar] imports around, but domestic pricing is keeping most of that at bay.” This makes it hard for some rebar importers to get cargoes.
Source:Kallanish
