Extremely low demand and high inventories have resulted in significant deals prevalent in both the US domestic and import rebar markets. Domestic spot prices are down approximately $0.50 cwt. ($11/mt or $10/nt) since last week, bringing most prices into the range of $35.25-$36.25 cwt. ($777-$799/mt or $705-$725/nt) ex-mill, while some sources have heard of transactions concluded as low as $35.00 cwt. ($772/mt or $700/nt). Downstream, distributors are being forced to cut prices even further for their customers after overstocking imports in the beginning of the year, and until demand picks up, prices will likely continue to slide.
Traders in the US are also suffering from a glut of unsold import positions, with many holding substantial amounts from the January/February flood of rebar into the US. Consequently, orders for future shipments are tepid, and sources tell SteelOrbis that traders are trying to hold Turkish offer prices in the range of $32.00-$33.00 cwt. ($705-$728/mt or $640-$660/nt) DDP loaded truck in US Gulf ports-unchanged from last week--but a lack of interest could force them to squeeze their margins tighter. In fact, many traders are focusing on Mexican rebar instead, which features quicker delivery and cheaper prices at the moment--an uncommon trend for the import market. Mexican rebar is still in the range of $31.75-$32.75 cwt. ($700-$722/mt or $635-$655/nt) DDP loaded truck delivered to US border states, but there are reportedly deals out there for up to $0.50 cwt. less.