Import offers for
rebar are still on an upward pricing curve since
scrap prices in the Black Sea region are still climbing, and Turkish mills are raising offer prices again.
Mills in
Turkey (the number one exporter of
rebar to the US) are producing at limited capacity, and with strong US demand for
rebar for
construction-related applications, Turkish mills have the leverage to keep prices high. The other two main
rebar exporters to the US are
Mexico and
Japan. The majority of their shipments are aimed at the US West Coast and the Southwestern area, not touching the high volume
rebar markets in the Gulf and on the East Coast. New suppliers such as
Bulgaria still have to show their commitment to the US market by shipping there on a regular high volume basis.
Import offers are ranging from $22.50 cwt. to $23.50 cwt. ($496 /mt to $518 /mt or $450 /nt to $470 /nt) FOB US Gulf ports, and are expected to increase further in the coming weeks.
The domestic market is strong as well, with significant demand from the
construction industry, particularly in business and residential sectors, including rebuilding in the New Orleans/Gulf regions.
The pricing trend for domestic offers would be up, but as announced last week, market leader
Nucor has decided to keep its bar prices the same, neutralizing the pricing trend and discouraging US consumers from accepting cheaper foreign offers.
Domestic offers still range from $24.25 cwt. to $25.25 cwt. ($535 /mt to $557 /mt or $485 /nt to $505 /nt) FOB mill. Extras change from one domestic producer to another and vary depending on bar size, grade, and length. The smallest
rebar size, #3 (9.5 mm) fetches the highest extra.