Although scrap prices did not settle as low as many predicted for June, US rebar mills are reportedly viewing the trend as validation of their decision to leave rebar prices unchanged this month. As such, they are trying to stem the flow of deals currently being made under the general spot price range of $32.50-$33.50 cwt. ($717-$739/mt or $650-$670/nt) ex-mill, despite outward pressure from imports. May's massive influx of Turkish rebar into the US seems to have subsided this month, but there are still plenty of unsold positions to contend with. Therefore, sources tell SteelOrbis that it will not be unheard of for mills to continue offering attractive discounts to their largest customers while putting up a front of price firmness for everyone else. But that resolve could weaken if position prices get more competitive, and future import offers continue to drop.
Turkish import offer prices fell about $0.25 cwt. ($5.50/mt or $5/nt) in the last week, bringing offers into the range of $28.25-$29.25 cwt. ($623-$645/mt or $565-$585/nt) DDP loaded truck in US Gulf ports. While the decrease is slight, it is evidence that Turkish rebar prices have not hit bottom. Interest in Turkish product is still relatively strong, say traders, but many buyers are waiting to see if the downtrend has further to go. Meanwhile, rebar offers from south of the border also slipped slightly in the last week--Mexican offer prices to the US are now in the range of $28.50-$29.50 cwt. ($628-$650/mt or $570-$590/nt) DDP loaded truck delivered to US border states, reflecting a $0.25 cwt. drop in the last week.