The news keeps rolling in this week. Chicago shredded scrap finalized last night at $380/ton, with no change from March pricing. Compared to prior months, it finalized very quickly this month given the uncertainty that surrounds the market right now with the tariffs this week and the trade cases. Domestic mills also wasted little time reacting to this week’s shift in the market, and last night a leading manufacturer announced a price increase of $60/ton on all rebar with an added twist of an additional $40/ton on 20’ rebar.  With little change in the scrap market on hand, this move was no doubt an effort to capitalize on the market uncertainty and slow down the rush of orders heading to the domestic mills. Mills were already tight on inventory, and this week’s events caused a rush of demand at the mills that they likely were not able to maintain a schedule. This morning other mills have followed with their own versions of increases as well.

In the days and weeks ahead, the market will be determined by how much inventory was under contract and pricing locked and how much true demand is out there. If the demand is strong and very little material is covered at fixed pricing, these increases are more likely to stick as buyers will be forced to pay them. However, if mills begin to loosen with a lack of new orders at these higher prices, you will see the impact of that as well. No doubt that the market has done a complete 180 in a week, with lower prices no longer on the radar and buyers scrambling to figure out where a fair price should be with the new rebar landscape.

Since this is our 3rd consecutive daily update, we will try to let the dust settle a bit… (Not sure the market can handle more excitement in a week, and I am probably sure you are tired of hearing from us!!) We will continue to update events that impact the market. In the meantime, have a great rest of the week.