While offer prices for import rebar from Turkey have dropped yet again, traders report that actual booking activity isn’t as robust as they imagine it would be with prices so low. Prices on the CFR level saw a slight drop this week, but it hasn’t yet translated to the current sales price range of $26.50-$27.50 cwt. ($530-$550/nt or $584-$606/mt) DDP loaded truck in US Gulf ports due to a shortage of solid inquiries as buyers wait for prices to hit the as-yet-unreached bottom. Further, many traders are still trying to unload positions ordered for roughly $60/mt more, although the current ample availability at the ports will not reportedly affect their plans to stock up for Q1 2015.
But despite import prices at the lowest level seen in five years, US rebar buyers are still turning to domestic mills. Shorter lead times compared to import arrivals are one factor, but sources tell SteelOrbis that many end-use projects require domestically-produced steel. This guaranteed baseline of demand has helped US rebar mills keep spot prices from plunging in response to the import trend--the range is stable this week at $34.50-$36.00 cwt. ($690-$720/nt or $761-$794/mt) ex-mill, although deals for underneath the range are still an option for certain buyers.