According to information sent to customers, Pittsburgh - Commercial Metals Co., Nucor, Steel Dynamics Inc. and Gerdau Long Steel announced increases in North American rebar transaction prices.
CMC notified its customers of the $50/st price increase on the evening of January 7, and this increase was immediately effective.
Nucor, SDI and Gerdau followed the same price increases that took effect immediately on January 8. All four manufacturers said orders approved after the January 7 business end will be price protected if shipped by Jan. 22.
These moves mark a fourth round of rebar price increases since the end of November. The four increase announcement is currently $185/st.
Rising scrap prices were the main reason for the increases as mill scrap prices increased above $70/l in the December purchase and January scrap purchase saw early bids in the Midwest, with an increase of $90/l over December prices.
Market participants had been expecting further price hikes in January due to expectations of stronger scrap pricing, but some supplies were noted to be limited.
"It's effortless to get these increases from factories," one distributor said. "Can you get the subject (material) now?"
One buyer, not surprised by the announcements, said, "It all increased by $40/st on December 17, and that $50/st completed the $90/st scrap movement."
Comments
No comment yet.