Import competition heats up in US domestic rebar market

Thursday, 20 March 2014 22:49:59 (GMT+3)   |   San Diego
       

Although import rebar offers from Turkey have leveled out in the range of $29.50-$30.50 cwt. ($590-$610/nt or $650-$672/mt) DDP loaded truck in US Gulf ports--for now, at least--Taiwanese mills are edging their offers downward.  The new price level around $32.00 cwt. ($640/nt or $705/mt) DDP in US West Coast ports, reflecting a $0.50 cwt. ($10/nt or $11/mt) decrease in the last week.  Traders tell SteelOrbis that inquiries for Taiwanese rebar is not particularly strong--demand on the West Coast leaves much to be desired, plus stevedoring and other port costs are among the highest in the nation--but there’s a good chance the current level doesn’t quite represent the bottom.  Sources expect another downtick in Taiwanese offers soon, along with an uptick in ordering activity.

As for the US domestic market, spot prices are hovering in the range of $33.50-$34.50 cwt. ($670-$690/nt or $739-$760/mt) ex-mill after mills made it clear last week that prices would remain unchanged for the time being. However, sources tell SteelOrbis that mills are becoming less and less amenable to quiet side deals for certain customers, even though imports are still a “thorn in their side” and raw material costs are dropping.  Many are welcoming this new era of stability while others, including many at the end-use end of the supply chain, don’t believe mills’ autonomy from strong market forces can last.


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