CMC, SDI, Gerdau raise US rebar prices by $40/st

Pittsburgh — Commercial Metals Co., Steel Dynamics Inc. and Gerdau Long Steel North America all announced rebar price increases on April 29 and 30, according to letters sent to customers.

CMC issued a $40/st price increase late in the day April 29, which was effective immediately. All confirmed orders at the end of business April 29 would be price-protected if shipped by May 13.

SDI followed the move with an identical price hike on April 30, in addition to a $20/st price increase on No. 3 rebar. Both price increases were effective immediately, with all confirmed orders as of the close of business April 29 price-protected if shipped before May 15.

Gerdau said its $40/st price increase was also effective immediately with new orders, while all confirmed orders at the end of business April 29 were price-protected if shipped by May 13.

Cincinnati producer Byer Steel also said it intends to raise its A996 rebar pricing by $40/st effective immediately, with price-protection for existing orders if picked up by May 14.

The increases were long-awaited by market sources amid tight domestic supply and an ongoing lack of imported material.

"This move ... doesn't surprise me at all. At this point, it is a simple game of supply versus demand," said one buyer, who expected another major producer to follow the price increases.

"No surprise about the increase, but the timing is a week or two early for what I expected," said another buyer.

US rebar prices were already at a twelve-year high prior to the announcements, with S&P Global Platts' latest weekly Southeast US rebar assessment at $800-$825/st, while Platts' latest weekly Midwest US rebar assessment was at $815-$840/st ex-mill.