US import rebar market awaits Turkish mills' next move

Import rebar prices have not changed in the past week, as Turkish rebar mills are out of the market until the end of the week due to the New Year and Eid festivities. The Turkish mills did not fix any significant orders before they went on vacation, due to their hopes of prices rises after the holidays. This will likely happen; combined with the good demand from their home market and from the Persian Gulf region, they are still receiving healthy interest from the US market. Also, as a related semi-finished product, the billet supply in Turkey is tightening as well because of the robust domestic market. Mills are obtaining great numbers for billets in their home market for re-rolling mills. Rebar prices are unusually close to billet prices, and rebar exports are now competing with billets returns. Turkey is still the main source of imported rebar in the US. Statistics from the US Steel Import Monitor show that from January through October 2006, Turkey shipped an unprecedented 1,044,910 mt to the US, more than doubling the tonnage it shipped to the US for the same period of the previous year, which stood at a mere 405,638 mt. This week, the few traders that are offering import rebar are quoting in a range of $25.50 cwt. to $26.50 cwt. ($562 /mt to $584 /mt or $510 /nt to $530 /nt) FOB loaded truck, in US Gulf ports. The pricing trend is still slightly up. Market conditions for domestic rebar have not changed in the past week, with US prices still ranging from $26.65 cwt. to $27.15 cwt. ($588 /mt to $599 /mt or $533 /nt to $543 /nt) ex-mill. The usual price extras apply for smaller sizes and grade 60. The pricing trend is still neutral, with prices not expected to change for at least another month. Other news this week is that leading North American rebar producer Nucor announced an offer to buy Canadian rebar fabricator Harris Steel, furthering its strategy of vertical integration. Long product companies are becoming more and more consolidated, as most fabricators are now owned by the major mills, including Nucor, Gerdau Ameristeel, and Commercial Metals Company. This trend should continue until the last few independent fabricators are snapped up by their suppliers.