US rebar markets up $50/st on price announcements

Following on Nucor's price announcement for the week ended May 16, two of its main competitors also announced plans to raise rebar prices beginning June 1.

Commercial Metals in Irving, Texas said it would raise base prices on reinforcing bar and merchant bar by $40/st effective with shipments on June 1, 2008.

Separately, Gerdau Ameristeel said it would raise mill prices by $60/st for rebar products sold in the state of Florida, and raise rebar prices by $40/st in all other markets.

The two-tier pricing scheme is intended to equalize prices in all geographic markets. Florida buyers previously paid slightly lower prices for delivery from Gerdau's big wire and rod mill in Baldwin, Florida, near Jacksonville.

The Platts domestic rebar price assessment was raised $50/st on Monday, mainly as a result of these corporate announcements, the elimination of price discounts, and the forward-orders already booked for delivery after June 1, 2008.

The new assessment settled at a midpoint of $880/st ($44/CWT) ex-works US Southeast mill.

This transaction price of $880/st implies a metals spread - the difference between selling price and scrap costs - of $315/st.

Meanwhile, the import rebar price also moved up, reflecting a steady firming in world prices. China export offers for rebar, for example, have been heard at $980-1,000/mt FOB China port and US buyers report hearing offers of $1,210/mt US port truck-loaded.

The Platts import price settled May 19 at $1,020/st CIF Houston ($51/CWT).

Although these offers have been heard in the market, there is little evidence of any transactions taking place.

The absence of competitively-priced imports has given free reign to domestic steel producers to freely raise prices, several market observers commented.

Additionally, US mills with a capability to produce either rebar, merchant bar, wire rod or billet are seeking the highest priced products, thereby keeping all products in relatively tight supply. Notably, semi-finished billet selling prices are now over $1,000/mt.

Created: May 20, 2008

Return to top

Steel Markets Daily offers steel prices that are backed with thorough market intelligence for the international steel industry and its consuming markets. Platts Steel Markets Daily also provides market commentary and news from the world's major trading hubs and industry specialists across the globe and analysis of market fundamentals that affect the whole steel supply chain.