Pittsburgh — Commercial Metals Co., Nucor, Steel Dynamics Inc. and Gerdau Long Steel North America all announced increases on rebar transaction prices, according to letters sent to customers.
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CMC informed customers of a $50/st price increase on the evening of Jan. 7, which was effective immediately.
Nucor, SDI and Gerdau followed with identical price hikes on Jan. 8, which were all effective immediately. All four producers said confirmed orders as of the close of business Jan. 7 will be price-protected if shipped by Jan. 22.
The moves mark the fourth round of rebar price increases since late November, with the four increase announcements now totaling $185/st.
Rising scrap prices have been a main reason for the increases, as shredded scrap prices rose by over $70/lt during the December buy and the January scrap buy saw early offers in the Midwest up $90/lt from December pricing.
Market participants had been expecting further price hikes given expectations of firmer scrap pricing in January, but some noted supply was tight.
"Getting these increases from the mills is a no-brainer," said one distributor. "It is now about if you can [get] material."
"They all went up $40/st on Dec. 17, and this $50/st makes the $90/st scrap move complete," said a buyer, who was not surprised by the announcements.