wiredInUSA April 2016

INDEX

Rebar price hikes will be high enough to achieve the full $20 or $30 increase. “Everybody would like for prices to go up, but you want to see demand drive that, rather than iron ore and scrap,” he said. “Demand is key, and that has been so sporadic that an increase may not stick.” One midwest distributor said he would be surprised if anything over $20 would take effect in the current market conditions. Rebar demand should increase as the US heads into construction season, but demand in February and March was less robust, according to a mill source. In addition, although Turkish import offers for rebar have increased, the domestic market still remains under pressure, he said.

In mid-March, several US mills officially announced price increases for rebar products, but market sources were cautious as to whether the result would be a general price increase. Both Gerdau Long Steel North America and Commercial Metals Co independently announced increases on rebar products. Gerdau’s increase, raising transaction prices by $30/st, took effect 21 st March, while CMC’s price increase of $20/st took effect on 1 st April. Buyers said they had already anticipated higher prices for April following scrap’s increase in March and early indications it could increase again in April. One southeast fabricator commented that, while higher raw material costs could provide some upward mobility for rebar prices, it remains to be seen if demand

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wiredInUSA - April 2016

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