Pittsburgh — Nucor, Commercial Metals Co., and Steel Dynamics Inc. have independently announced price increases of $30/st on rebar, according to letters sent to customers.
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On the evening of Nov. 20, Nucor informed customers it would increase rebar prices by $30/st effective with new orders Nov. 23.
CMC followed with a $30/st rebar price increase of its own on the morning of Nov. 23, and SDI followed with a $30/st rebar price increase later in the day. The CMC and SDI increases were both effective immediately.
Nucor and CMC said orders placed before close of business Nov. 20 would be price protected, while SDI said it will price protect orders placed by close of business Nov. 23.
Mixed market reactions
Rebar increases were certainly foreseen given expectations that scrap prices are going to rise once December trading begins, along with decently strong rebar market activity. However, with current uncertainty in the market, given the prolonged Presidential election legal battles and the reported resurgence in Covid-19 cases, some were unsure of the timing of the increases.
"It's crazy because these are big increases and I have a hard time believing it right now. With Covid-19, the election still going on, a stock market acting like everything's good... truly, I don't know. This is one of the few times where I feel like I can't read the economic tea leaves," said one buyer.
Another buyer reported difficulty in procuring rebar.
"I'm okay with the new price, I just want my tonnage," he said. "Even last week we could see this coming and tried to make buys but we were unable to."
A third buyer was surprised given that he had spoken with a mill the week of Nov. 14 and been given no indication of hikes. He did however, along with the first buyer, report a strong October and continued market strength.
"We're going to go into December probably busier than we've ever been," the first buyer said.