Rebar prices in the US Midwest held mostly firm as mills began to hint at a coming price increase, market sources said Monday.
"There has been chatter, but nothing official," said one Midwest distributor.
One Midwest fabricator said while an official price increase has yet to be announced, the mill he buys from suggested a price hike could be coming soon, but no specific time frame or amount was discussed.
Given Chicago shredded scrap's $20/lt increase for March and early indications another increase may be coming in April, it should give Midwest mills enough upward momentum for an increase, according to a second fabricator. He said he is already seeing a $20/st increase on rebar.
In addition to rising raw material costs, an uptick in demand from the domestic construction industry and the recent passage of a new federal highway bill is helping to generate some optimism in the rebar market heading into spring, sources said.
"I'm still buying at the same price, but I am expecting an increase for April," said a Midwest buyer.
Platts maintained its weekly Midwest rebar price assessment at $475-$500/st ex-works on Monday.
