Although at least one US rebar mill--Gerdau--has pre-empted scrap prices settling with a sideways transaction price move for June, it has done nothing to firm up spot prices or prevent them from slipping further. The current spot price range of $32.50-$33.50 cwt. ($717-$739/mt or $650-$670/nt) ex-mill is still intact, although deals for as low as $31.75 cwt. ($700/mt or $635/nt) ex-mill--as reported last week--are becoming not so uncommon in the market. Sources tell SteelOrbis that prices are vulnerable not so much due to a downtrend in raw material prices, but to a massive influx of Turkish rebar into US ports. In May alone, import license data showed that 131,922 mt of Turkish rebar arrived in the US, with many shipments comprised of unsold positions. Although position prices are not terribly far underneath US spot prices, the sheer availability is putting pressure on US mills to offer discounts where they can. One way, according to sources, is delaying the updating of freight rates--a strategy widespread enough for Gerdau to mention in their price letter that they would be reviewing their Freight Matrix to "ensure that we are reflecting the latest costs while remaining competitive in the market."
As for future order offer prices for Turkish rebar, the price range has remained unchanged in the last week at $28.50-$29.50 cwt. ($628-$650/mt or $570-$590/nt) DDP loaded truck in US Gulf ports. Mexican offer prices are also stable at $28.75-$29.75 cwt. ($634-$656/mt or $575-$595/nt) DDP loaded truck delivered to US border states, although traders report that lower prices are available to those with an "interesting" bid.