US rebar pricing: Worse could be ahead

US rebar pricing: Worse could be ahead

As expected the import rebar offers started to go down this week. Some traders are now offering $22.00 cwt. ($485/mt) and lower for duty paid - loaded trucks in Houston. Prices are about $0.50 cwt. ($11.02/mt) higher in the East Coast ports due to higher freight rates and stevedoring costs. On the buying end, some Northern European and Turkish mills are now offering $380/mt FOB. With ocean freight rates also softening, this should calculate to less than $430/mt CFR FO for the US Gulf Coast Ports. Unfortunately, no one can predict when the price decreases will end. Most import buyers know that the prices will deteriorate further and are holding their purchases until they bottom out. On a positive note, downstream demand and consumption is healthy and getting stronger due to the improved weather. This will allow US mills to maintain their price levels which they just reduced by $30/short ton ($33.07/mt) two weeks ago.