The Canadian International Trade Tribunal this week recommended only two of seven steel import products continue under safeguard protections, and rebar was not one of them. The safeguard order on imported rebar will expire on May 12 unless the CITT decision is appealed, so sources say Canadian rebar buyers are still in “wait and see” mode until then. Once the expiration date passes, however, sources say domestic rebar prices will drift downward starting in early Q3, as many domestic mills added an “uncertainty margin” into their price levels after the safeguards were first announced last year.
According to sources, one Canadian domestic rebar mill has already tried to mitigate the potential downtrend in prices by announcing a CAD 30/mt price increase to be effective June 1. However, sources say the move was predicated on confidence that this week’s safeguard ruling would be in domestic steelmakers’ favor. No other mills followed suit, and sources say there’s “no way” the increase will be accepted in the market, despite “very strong” demand, especially from the construction sector.
For now, Canadian domestic rebar prices have not changed in the last month. On the West Coast, prices are around CAD 975-1,075/mt ($730-$805/mt) ex-mill, while prices on the East Coast are heard at CAD 900-950/mt ($674-$711/mt) ex-mill, and prices in the Prairie regions are still at CAD 950-1,000 ($711-$749/mt) ex-mill.
USD = CAD 1.34 (April 4)