Import rebar prices finally catch up to US market trend

Thursday, 30 August 2012 00:20:34 (GMT+3)   |  

Although Mexican mills initially kept their rebar offer price uptrend low-key, in the last week they have firmly stood behind the new offer range of $32.00-$33.00 cwt. ($705-$728/mt or $640-$660/nt) DDP loaded truck delivered to US border states--reflecting a $1.50 cwt. ($33/mt or $30/nt) increase since mid-August.  Turkish rebar prices have also increased, jumping up $1.00 cwt. ($22/mt or $20/nt) in the last week into the range of $32.00-$33.00 cwt. DDP loaded truck in US Gulf ports.  Because Turkish and Mexican offers are basically identical, traders tell SteelOrbis that any US customers interested in imports are preferring material from south of the border, where lead times are a mere six weeks out (compared to the two to three months required for overseas shipment).

On the domestic front, demand and prices for rebar remain steady.  Because US mills had no trouble securing the full $2.50 cwt. ($55/mt or $50/nt) in price increases this month ($1.00 cwt. early in the month and another $1.50 cwt. after scrap prices settled), sources believe that they will have just as much success with whatever increase they announce for October shipments once September scrap prices are apparent (an uptrend is expected).  For now, spot prices remain firmly in the range of $34.50-$35.50 cwt. ($761-$782/mt or $690-$710/nt) ex-mill, although sources report that only the largest customers are getting deals at the lower end of the range.


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