While US rebar prices remain stable, rising raw material costs and a tightening supply outlook in the colder months could provoke a price increase before the end of the year, according to market participants.
Fastmarkets AMM's price assessment for domestic rebar held at $35-36 per hundredweight ($700-720 per short ton) fob Midwest mill on Wednesday November 7, unchanged since mid-April. Meanwhile, the US imported rebar price assessment stood at $676-700 per ton cfr Port of Houston.Increase looming on the back of scrap gains?Chicago shredded scrap prices have risen for the second straight month, settling at $355 per gross ton on Friday November 2, up $20 from $335 per ton in October. This marks a $30 rise from September, when Chicago scrap fell to $325 per ton. Because of the upward movement in scrap prices, one rebar distributor predicted that domestic mills would announce a $1- to $2-per-cwt price increase by mid-December, effective for January shipments. And elevated business activity after the seasonal slowdown in November and December would likely support such a move or mitigate pushback against...