US domestic rebar prices are down for the first time in five weeks, beset by lacklustre scrap trade, subdued demand and a potential uptick in import arrivals, Kallanish hears from market participants.

Pricing for US domestic #4 rebar in 20-foot sticks has declined to a new range of $740-$750/short ton, from $750-$760/st last week. This marks a 13.9% decline year-to-date.

US scrap prices for September trade are mostly in line with expectations. Despite the tight availability of material, fundamentals remain insufficient to support scrap prices (see Kallanish 10 September). 

One rebar market participant notes a bump in his distribution business, but it is still off seasonal norms. 

“Some are saying that there is a slight uptick. We are actually busier, [but] not ready to declare it a recovery,” states a mid-Atlantic distributor. “But July was slow, August got a little better and now September is a little better. [The] backlog is still low and we’re not seeing the quotes we normally see either.”

Rebar market sentiment in the northeastern US is showing little change.

“Rebar activity remains slow following a busy period into the Labor Day weekend,” says a northeastern fabricator and distributor.

Whilst business conditions may have improved from a relatively low bar, rebar prices remain hamstrung by building supplies and sluggish demand.

“In an environment like this, everyone is living hand to mouth. [They’re] buying only when they have to fill the orders,” adds the mid-Atlantic distributor.

Supply-side pressure are likely to build, with reports of another rebar shipment coming into the East Coast in the coming weeks. This follows a shipment in late-August..

“Domestic is competitive, so all this [import flow] is going to do is drive pricing down further,” adds the mid-Atlantic distributor.