CRU: Longs prices continue to fall in North, South America

Sufficient inventories resulting in softer demand continued to drag down US longs prices this month. Furthermore, lower scrap prices in May added to the downward pressure and expectations for June scrap are turning increasingly bearish. Import interest was also limited, particularly as competition among domestic producers rose.

Rebar prices declined $1.00 per cwt month over month (m/m) to $39.50/cwt, while merchant bar and structurals prices were unchanged. Market participants reported instances of select discounts and better pricing for larger volume purchases. However, buyers are still reluctant to purchase bigger volumes, both domestically and for import, as they anticipate prices may continue to fall. Sellers noted that transactions are occurring more on an as-needed basis i.e., smaller tonnages for a slightly higher price and a shorter lead time.