US rebar demand predicted to top 8.7 million st in 2015

SPOKANE (Scrap Monster): According to the Concrete Reinforcing Steel Institute (CRSI), the country’s rebar consumption is all set to reach 8.7 million st in 2015, growing by 8% over 2014. It further states that some industry participants doubt whether supply will be able to keep pace with demand growth.

According to Bob Risser, President, CRSI, the country’s consumption of domestic and imported rebars is expected to grow by nearly 600,000 st during 2014. The Institute sees the 2014 rebar consumption to touch 8.1 million st in 2014, nearly 8% higher when compared to the consumption of 7.5 million st during 2013.

Meantime, Chris Casey, Executive Director, Independent Steel Alliance raised concerns that rebar availability is likely to remain under pressure as domestic mills in some regions of the country are planning to go ahead with production cuts next year. Furthermore, the construction demand is expected to remain robust in 2015, which should further tighten supply. Also, rebar mill inventories are reported to be at lower levels.

The blockade in rebar trade with Mexico will further add to supply concerns, industry sources say. The US imports of Mexican rebars plunged to as low as 73 mt during November this year, when matched with the total imports of 28,179 mt during the same month last year.

According to American Iron and Steel Institute (AISI), the country’s rebar imports climbed higher by 17% during the initial eleven-month period of the year. The imports during January to November this year totaled 1.32 million mt as against the imports of 1.13 million mt during the corresponding eleven-month period last year. The overall rebar imports by the country are expected to grow by 19% in entire-2014.