Continuing the downtrend that kicked off a little over a week ago, import rebar offers from Turkey have once again dropped in the last week, with Turkish mills blaming cheap Chinese billet. However, traders tell SteelOrbis that new price ideas vary widely between Turkish producers, and even though the overall trend is distinctly down, sales prices in the US aren’t corresponding. Customers know the bottom has yet to be reached, so for now they’re reportedly holding off on booking orders. Additionally, Turkish mills are facing stiff competition from Taiwan (which is not only undercutting Turkey on price, but shipping into the Gulf as well) and US domestic mills.
Last week, the lowest price available for Turkish rebar in the US was around $25.00 cwt. ($500/nt or $551/mt) DDP loaded truck in US Gulf ports. This week, that level is at the top end of the range, with offers heard as low as $23.00 cwt. ($460/nt or $507/mt) DDP loaded truck in US Gulf ports. Orders are expected to pick up as prices drop, but for now sources say the US rebar market is “full” and no one wants to get caught with high-priced inventory.