Author: Paul Ploumis07 Feb 2015 Last updated at 00:24:28 GMT
SEATTLE (Scrap Monster):US-based rebar traders are holding off on making rebar deals, as they expect import offers will fall with scrap prices.
The Platts daily US import rebar price assessment edged down to $460-465/st ($507-513/mt) CIF Houston from $465-470/st ($513-518/mt).
"We're not going to quote people right now, but it's below $500/mt CFR Houston," a trader said this week during a convention in Las Vegas.
Many market participants said during the World of Concrete convention in Las Vegas they were not planning to make any deals this week, and would wait to see new numbers next week.
The trader said only Turkish mills were offering at that price level for now, but another trader disagreed, saying he booked last week at $490/mt CFR Houston from Japan.
He said Turkish prices are $500/mt CFR Houston, but he did not have a firm number.
The trader said his customers are not buying the large volumes they normally would at this time of year, because of declining scrap prices.
His customers will need rebar for April. The trader is not going to buy because he expects prices to fall further next week, accounting for declining scrap prices paid this week.
Platts assessed the price of shredded scrap at $250/mt CFR Turkey on Thursday; the assessment has fallen $55.50/mt CFR since January 26.
The Platts daily domestic US shredded scrap price assessment has dropped $80/lt from early January levels, holding at $260/lt delivered Midwest mill on Thursday.
A third trader said he bought rebar at $510/mt CFR Houston last week. He said traders are "hoping" that prices are at $500/mt CFR, but he doesn't see prices there yet.
Scrap prices do not immediately translate into lower rebar prices, he said, though he expects that rebar offers from Turkey will be lower next week.