As Turkish sales prices in the US get a minor boost, Mexican mills are willing to entertain offers much lower than officially reported.
Within the last week, prices in the local Turkish rebar market have increased, and due to an uptick in both domestic and export demand, Turkish rebar prices are expected to continue to climb. As such, sales prices in the US for imported Turkish rebar have increased by about $0.50 cwt. ($11/mt or $10/nt) in the past week. While US traders are not exactly inundated with transactions at the moment, there have been some minor bookings reported in the new price range of $35.00-$36.00 cwt. ($772-$794/mt or $700-$720/nt) duty paid FOB loaded truck in US Gulf ports, which is interesting considering the level is now equal to US domestic spot prices.
On the other hand, rebar prices to the US from Mexico are heard to be slightly less than previously reported asking prices of $36.25-$37.25 cwt. ($799-$821/mt or $725-$745/nt) duty paid FOB delivered to US border states. In fact, sources tell SteelOrbis that Mexican mills are not even sticking to an official price range, but instead requesting firm bids to consider. In the last week, transactions have been reported as low as $35.00 cwt. ($772/mt or $700/nt) duty paid FOB delivered to US border states.
As for the US domestic market, prices are still steady, with an approximate $2.00 cwt. ($44/mt or $40/nt) spread between official asking prices and spot prices, as previously mentioned, in the range of $35.00-$36.00 cwt. ex-mill. With the expectation of a sideways to slightly downward trend in scrap pricing next month, domestic rebar mills will likely keep prices level unless the potential decrease takes a last-minute dramatic drop.
