Public Announcements on Rebar
The major mills have announced price increases affecting West Coast rebar supply. Mills are looking to increase rebar pricing out West by $50/ton. It is unique in that it is only for the West Coast, where there have developed recent supply constraints, and the price increase announcement is likely a function of the tight supply. In addition, there is less impact of import supply out West, which only serves to further tighten the market. Demand out west remains lackluster, so the common consensus is the announcement has more to do with supply. The rest of the country faces a better supply picture, so it is uncertain if increases will be announced in the other regions.
In another separate announcement, a major manufacturer announced a $15/ton upcharge on all non-standard length orders. A cut-to-length charge is not that uncommon, and this announcement was likely just to reaffirm the charge as the ramp-up in both border wall construction and data storage construction is expected. Both utilize a large volume of cut-to-length material. Mills are likely looking to ensure they are priced properly for this work ahead.
We will continue to update developments in the market as they occur. Have a great week.
