Market Update – June 1, 2026
As June starts, the rebar market remains persistently strong. The increases announced in the last month for both East and West Coasts have begun to take hold, and solid demand is revealing short supply in several areas and several items. Market conditions heading into the year have kept traditional stockists from “loading up” on inventory, and consequently, supply remains low to start the summer season. Rumors have begun to swirl about further increases this summer, but threats of imports ramping back up coupled with stable or declining scrap prices seem to keep the domestic pricing in check, just trying to realize the full increases already announced. An incredibly tight logistics market is only furthering higher rebar prices to start June.
On the domestic side, the West Coast is stronger than the East. Lack of imports and fewer mills are reflected by a tighter supply picture. Most agree that the demand out West is not overly strong… however, the supply concerns are strong enough that the full $50/ton increase announced early this year looks to have fully “stuck” as we head into June. East of the Rockies, the $30/ton announced last month struggled to gain traction, but the demand looks to be picking up the slack… and now the increases have started gaining ground. A dwindling import picture also contributes to tight supply in the east and increasing pricing pressure in the east.
Imports struggle to gain relevance in the US market. With the continued tensions in the Middle East driving ocean freights higher, import mills struggle to be competitive with high ocean freights and a 50% duty. Imports are available, but in most cases, current numbers for future shipments are the same or even higher than domestic current numbers. Still, import offers provide a backdrop for the market price and prevent the domestic price from increasing dramatically heading into the future. The most attractive offers are coming from Asian sources with extended lead times.
On the scrap front, pricing looks to show very little change. After moving sideways in May, shredded scrap looks poised to remain the same for June, if not come off a bit. The lack of increase helps to hold future prices in check as the spreads between raw materials and finished goods remain at or near all-time highs. Any upward movement in price without the support of raw materials could create a negative impact on the manufacturer’s image and their position in a market that is already experiencing heavy inflationary costs and margin reduction downstream. If mills do decide to bump the price, customers will be quick to point out that the scrap market has not moved in the last 90 days. Expect final scrap numbers to be available in the coming days.
We will continue to keep you posted on developments in the rebar market as they happen. Have a great week!
