Steel Industry Fluctuations Dictate the Rise and Fall of the Average Price of Rebar

To get a firm grasp on the reasons for the topsy-turvy nature of the average price of rebar, you needn't look further than the volatile steel industry that provides the source material for its production.

Average Price of Rebar

The reasons for overall steel price and market fluctuations are multi-faceted and complex, although imports from China and other Asian countries have been consistently found to play a major role. Uncovering the reasons for fluctuating rebar prices, on the other hand, is far simpler-if the price of steel rises, so does rebar, and vice versa. The average price of rebar generally tows the line of that of structural steel, within a range of about 10 per cent.

Over the past few years, the volatility of the steel market has made budgeting for construction as much a matter of guesswork as one of strategy. Bankruptcies, temporary government tariffs, steel imports and mergers, and worldwide fluctuations in scrap metal, have all combined to make the situation acutely tumultuous. Builders and contractors would do well to keep a close eye on steel market trends, as it can significantly impact bidding and budgetary processes going forward.

As for the future outlook of rebar prices, concrete industry experts are projecting a modest upward swing in 2007, after being boosted by $15 per short ton on February 1, 2007, and over $50 per short ton in April, 2007. For detailed quotes on the current price of rebar, contact a White Cap service professional.

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