Although import rebar offers to the US from Turkey saw another slight dip this week, traders tell SteelOrbis that Turkish mills are trying to “draw the line” at the new CFR range. Lower offers are not being accepted, but traders say that mills “only think” prices have hit bottom—many sources expect a rise in flexibility once Turkish mills get eager for orders from all the traders currently holding back. As such, traders are waiting to adjust the sales price range for Turkish rebar, leaving it static at $22.00-$23.00 cwt. ($440-$460/nt or $485-$507/mt) DDP loaded truck in US Gulf ports until they get a clearer picture of the rebar offer outlook.
However, it’s not the future order prices that are putting the most pressure on US domestic rebar spot prices—the glut of positions available at the port are becoming increasingly attractive in price, with many orders available for just a dollar or two above future prices. The margin between futures and positions might get slimmer if March proves to be the high point in rebar arrivals, as it was last year, and so far in February (as of Feb. 24), over 135,000 mt of Turkish rebar has arrived in the US. With so much competition, sources say US mills are struggling to hold onto the already-low spot price range of $31.50-$32.50 cwt. ($630-$650/nt or $694-$717/mt) ex-mill.