Will continued Section 232 delays spur activity within the US import rebar market?

Tuesday, 18 July 2017 23:09:38 (GMT+3)   |   San Diego
       

Although some news reports claim a decision in the ongoing Section 232 investigation is “imminent,” the number of delays so far has left many in the US import rebar market impatient. “We can’t wait around forever,” one source said, adding that he’s “dipping toes in the quote waters” to consider possible bookings.

However, rebar producers in several countries, including Turkey, have made it clear that US buyers will be responsible for paying any Section 232 tariffs that are implemented after ordering. And unlike booking orders while waiting for AD/CVD results from typical US DOC trade investigations—when there is a general idea of what final duties might be, due to alleged duties (in the petition phase) and preliminary duties—sources tell SteelOrbis they have “no clue” what 232 tariffs might look like. As such, determining whether an import quote is low enough to take the risk is “nearly impossible,” despite some traders reportedly “testing the waters.”

The last-heard offers for imported rebar in the US domestic market from Turkey were $25.00-$26.00 cwt. ($490-$510/nt or $540-$562/mt) DDP loaded truck in US Gulf ports. Sources tell SteelOrbis that current quotes are “not too far off,” from this level, although actual booking activity is still virtually “nonexistent.”


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