Although US domestic rebar mills are reportedly “ecstatic” about the higher than expected final AD/CVD margins against rebar imports from Turkey, Taiwan and Japan, reactions among other segments of the supply chain are mixed.
Sources tell SteelOrbis that the final AD margins against Turkey, ranging from 5.39-8.17 percent, aren’t high enough to remove Turkish rebar imports from the market (although the 16.21 percent CVD margin against Habas is high enough to remove that company from import consideration). However, distributor sources say the expected rise in Turkish offers overall will be “disappointing” to their bottom line.
Smaller distributors and fabricators are also concerned about the effect the ruling will have on US domestic rebar prices. “A price increase is coming, just you wait,” said one source, a sentiment echoed by others who expect US rebar mills to “seize the opportunity” for higher profit margins.
While the ruling is too recent to have a measurable effect on US domestic rebar spot prices, sources say they are already experiencing pushback to dealmaking attempts, and until any sort of mill increase is announced, spot prices at the bottom of the current range of $30.75-$32.25 cwt. ($615-$645/nt or $678-$711/mt) ex-mill are expected to firm upward.