After Gerdau rescinded their June increase last week, the best that many in the US domestic rebar market said they could hope for was continued stagnation in prices. However, sources tell SteelOrbis that in the last week, US domestic rebar has been available from certain large distributors at $1.00 cwt. ($20/nt or $22/mt) less than the average spot range of $34.25-$35.25 cwt. ($685-$705/nt or $755-$777/mt) ex-mill. While the “domestic dumping” as one distributor called it isn’t widespread enough to drop the spot range entirely, if the practice continues, a full-market adjustment could happen by next week.
Part of the reasoning behind the discounting has been attributed to an overabundance of imports in the market. The flurry of orders preceding the US DOC’s April ruling on the rebar trade case involving Turkey are still arriving, and until the DOC makes its final ruling in August, futures orders continue to be placed at prices well below US spots. Turkish rebar offers are still in the range of $29.50-$30.50 cwt. ($590-$610/nt or $650-$672/mt) DDP loaded truck in US Gulf ports, although sources tell SteelOrbis that deals can be made at around $0.25 cwt. ($5/nt or $5.50/mt) less.