Traders tell SteelOrbis that Turkish mills are still accepting slightly lower offer quotes for import rebar to the US, and as such, they have dropped their own offering prices by $0.50 cwt. ($10/nt or $11/mt) this week. New offer prices are in the range of $21.25-$22.25 cwt. ($425-$445/nt or $468-$491/mt) DDP loaded truck in US Gulf ports, marking a new record low price for 2015. Already, import arrivals this month are set to surpass June levels—import license data from the US Department of Commerce show July arrivals as of the 21st totaling 111,628 mt, whereas June’s full-month total only reached 111,075 mt. While sources say arriving positions won’t necessarily compete with cheaper future order offers, the glut of supply in the market will pressure prices across the board—including domestics.
Which is why many sources now say a price decrease in the US domestic rebar market could be imminent. Already, spot prices have clung to the months-long level of $31.50-$32.50 cwt. ($630-$650/nt or $694-$717/mt) ex-mill, with frequent deals reported. Speculation as to how much prices will drop is still scattered, but the lowest-heard guess is around $1.00 cwt. ($20/nt or $22/mt).