After forgoing the monthly price policy letters that were typical up until the last few months, US rebar mills finally broke their silence this week by releasing letters to customers indicating a $0.50 cwt. ($11/mt or $10/nt) transaction price effective with all new orders. Although the increase was moderate (and not exactly tied to this month's scrap trend), sources tell SteelOrbis that more increases are on the horizon. Specifically, once the ITC makes its initial injury determination on rebar imports from Turkey and Mexico (although the ruling date is no longer clear considering the US government shutdown), US rebar mills are expected to announce another increase--likely with a little more heft. Until then, US domestic spot prices are now in the range of $32.00-$33.00 cwt. ($705-$727/mt or $640-$660/nt) ex-mill, reflecting full absorption of this week's increase--sources say mills are not budging on the new price levels.
As for imports, it's still unlikely import sources other than Turkey and Mexico will provide much competition for US domestic spot prices. Offer prices from Korea are still in the range of $32.00-$33.00 cwt. DDP loaded truck in West Coast ports--the same range as US spot prices, and likely to rise according to traders, who say they are so far resisting efforts by Korean mills to bump up offers. Import rebar offers from Portugal are also facing an uptrend, although traders are still offering for around $31.00 cwt. ($683/mt or $620/nt) DDP loaded truck in US Gulf ports this week.
Meanwhile, import offers from disputed sources Turkey and Mexico are still both in the range of $29.50-$30.50 cwt. ($650-$672/mt or $590-$610/nt), DDP loaded truck in US Gulf ports and DDP loaded truck delivered to US border states, respectively, although traders tell SteelOrbis that the lower end of the Mexican range is starting to dry up for all but the largest order sizes.