Importers market for small sections in US Gulf
Due the reluctance of US steelmakers to produce small sections, the US remains an importers market for ornamental size merchant bars such as
flats, rounds, squares and angles. Key importers are
Turkey,
Mexico,
Canada, South
Korea,
Brazil and
Argentina.
Turkish mills have been the most regular suppliers. They have supplied a steady stream of modest tonnage over the past six years. Current mill prices from
Turkey are in the $550$580 range, CFR FO U.S. Gulf. However, very light booking has been reported at this level due to a generally slow US market and the fact that the Turkish prices are higher than those of several competitors. Since Turkish mills generally do not produce billets in house they must ride the ups and downs of the spot market, placing them at a slight disadvantage when it comes to pricing.
Mexican and South American mills have seized the opportunity to eat away at the Turkish market share in the US, aggressively pricing their sections about $20-30 /mt lower than the Turkish mills.
Due to their own domestic market conditions, Argentine mills have been in and out of US market. However, the Argentine product has been generally superior to that of other supplying countries.
ASTM standard "bar channels" have been very difficult to procure from offshore mills. These products are difficult to produce within the ASTM, thus output is low for producing mills. Some South Korean mills supply these products at extremely high prices, ranging from $630 to $650 /mt CFR FO Houston. South
Koreas main competition in the Gulf and West Coast markets is the Canadian (Gerdau) product.