Are import rebar sources starting to diversify in the US market?

Thursday, 14 August 2014 01:08:03 (GMT+3)   |   San Diego
       

Although Turkish rebar offers to the US are still edging upward, they remain, for now, the primary source of import rebar in the US, with prices in the range of $28.75-$29.75 cwt. ($575-$595/nt or $634-$656/mt) DDP loaded truck in US Gulf ports (a slight CFR boost this week should translate into sales offers soon). However, traders tell SteelOrbis that other offshore sources are trying to edge into the market. Rebar from Japan and Spain, for example, has already started to hit US ports--US import license data show that as of August 12, nearly 18,000 mt of rebar has arrived from Japan for the month, while just over 13,000 mt of Spanish rebar has arrived--both representing significant tonnages compared to low, spotty totals throughout the last year. Of course, arrivals from those two countries combined don’t come close to Turkey’s month-to-date arrival total of 77,825 mt, the highest level since March--and offer prices from those sources are up to $35/mt more than Turkey’s on the CFR level (depending on US port). But with final determinations in the trade case against Turkey due next month (and considering the reversal in fortune for Korean mills during the recent OCTG case), Japan and Spain might find the playing field quite open in the near future--a good reason to lay the groundwork now.

As for the US domestic market, the swelling influx of arrivals from Turkey hasn’t seemed to affect spot prices quite yet, but it could affect upcoming mill decisions to increase prices. For now, spots are stable at $34.75-$35.75 cwt. ($695-$715/nt or $766-$788/mt) ex-mill, with demand and order activity still decent, according to sources.


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