US rebar prices were lower this week as demand for steel building materials remains limited and a flat to down July scrap outlook limits new market activity, market insiders told SteelOrbis this week.
This week’s rebar outlook varies from the week of June 10, when rebar prices were largely steady on the week despite an early “sideways to June” July scrap outlook and reports that construction-related demand continued to suffer.
US domestic rebar prices are assessed in a wider $36-$40/cwt. ($794-$882/mt or $720-$800/nt) FOB mill range, though insiders say most new trades are done at $38/cwt. ($838/mt or $760/nt). Last week, domestic rebar was $38.50-$39.50/cwt. ($849-$871/mt or $770-$790/nt) FOB mill.
On the July scrap front, July busheling scrap in the US Ohio Valley is discussed at or below $375/gt ($381/mt) delivered to customer. US East Coast Busheling scrap is talked at or below $335/gt ($340/mt) delivered.
On the import front, US Gulf Coast, import rebar loaded truck basis is discussed at $36.50/cwt. ($805/mt or $730/nt), versus $36.75-$37.25/cwt. ($810-$821/mt or $735-$745/nt) loaded truck basis last week.
Exports from Mexico vicinity Houston, Texas, loaded truck basis are quoted at $37.00/cwt ($816/mt or $740/nt), versus $37.25/cwt. ($821/mt or $745/nt) seven days ago. Insiders continue to say that the devaluation of the peso versus the US dollar continues to help Mexican rebar to be more competitive with US products, adding that if ongoing devaluation continues, July rebar could be priced as low as $36.25/cwt. ($799/mt or $725/nt).