Factors that affect rebar pricing are changes in cost of raw materials and changes in demand for steel within and outside the United States. Forces of demand and supply affect the prices of rebar in that when there is oversupply in the market, prices drop.
China consumes a large percentage of rebar, and in 2014, demand for rebar in China dropped, significantly increasing inventory levels across the world. This slowdown in demand happened across different markets, resulting in the oversupply of rebar.
Changes in demand for rebar in the U.S domestic market affects rebar prices. When demand is high, prices increase and when supply is high, prices drop. The decline in prices of iron ore also affects the price of rebar.