Despite uncertainty regarding potential import tariffs resulting from the Section 232 investigation, the US domestic rebar market is “charging forward,” according to sources, with strong demand bolstering recent mill price increases. Additionally, the swift absorption of those increases into the market has reportedly encouraged US domestic rebar mills to consider more price increases in the near future, especially if raw material prices stay strong and import arrivals remain low.
According to the latest steel import license data, only 89,006 mt of rebar import permits have been recorded this month as of Jan. 23; if the dampened trend continues, final rebar import totals for the month could fall short of 100,000 mt for the first time in years. Sources tell SteelOrbis that US rebar mills are “absolutely taking advantage” of the situation in their pricing policies.
At SteelOrbis’ 9th Annual Rebar & Wire Rod Conference this week, attendees mentioned that the next US rebar price increase could happen “within a couple weeks,” although speculation was mixed on an increase amount. Some market insiders pointed to another $2.00 cwt. ($40/nt or $44/mt), while others believed mills would “temper their price ambitions” with something closer to $1.00 cwt. ($20/nt or $22/mt).