Major steel mills are hiking rebar prices by $25/st in the US market, according to letters sent to customers first by Commercial Metals Co on Friday, followed by Nucor, Gerdau Long Steel North America and Steel Dynamics Inc. on Monday.
Many in the market believe this move will stick due to tight supply.
"Even though scrap is flat, the lack of availability at the mills with floor stock and import bar not being plentiful at the ports will help drive things," one buyer said.
Another buyer expressed a similar outlook.
"February production has been sold out for a while," he said. "I think supply is likely to be more of a challenge for March than folks are aware."
"I don't see any issue with this sticking, as the mills are overwhelmed by 20-foot [rebar] orders due to the shift from import to domestic in the second half of 2017," a third buyer said.
According to the companies' letters, all increases are effective immediately. SDI will price-protect confirmed orders if shipped by March 8, Gerdau and CMC will price-protect orders shipped before March 9, and Nucor will do the same on orders shipped before March 10.
