The predicted downtrend in import rebar offers to the US from Turkey has taken hold this week, with prices on the CFR level dropping by about $10/mt this week. While many traders are reportedly holding off on booking orders until offers see a bottom, they have lowered their prices to US customers down to $25.50-$26.50 cwt. ($510-$530/nt or $562-$584/mt) DDP loaded truck in US Gulf ports. However, sources tell SteelOrbis that traders are much more eager to unload already-arrived positions, which are available for around $28.50 cwt. ($550/nt or $628/mt) DDP loaded truck in US Gulf ports at the lowest end.
As for the US domestic rebar market, purchasing activity is especially decent considering the surprise transaction price decrease last week, and even though the scrap trend is looking soft, sources tell SteelOrbis that there is a good chance mills might reconsider the move next month. An official increase would be less likely than a quiet, gradual spot price firming, but either way, market players don’t expect rebar prices to remain in the range of $32.75-$33.75 cwt. ($655-$675/nt or $722-$744/mt) ex-mill for long.