With Spanish rebar producers not receiving enough demand from the international markets, their rebar export prices have decreased slightly. Spanish rebar suppliers’ rebar export offers which were at least at $475/mt ($532/mt) FOB last week, are now heard to be at €470/mt ($526/mt) FOB. Overall, Spanish rebar offers in the international markets are generally in the range of €470-480/mt ($526-538/mt) FOB.
US President Donald Trump’s decision to increase the 25 percent Section 232 duty on steel imports from Turkey to 50 percent in August 2018 allowed Spain to increase its market share in the US rebar market. Spain, Italy and even Bulgaria significantly increased their rebar sales to the US in the subsequent period, while Turkish mills failed to conclude any sales to this destination due to the 50 percent duty. In the current week, Spanish rebar offers to the US are standing at $739/mt DDP loaded truck at US Gulf ports. However, the announcement by the White house that the 50 percent duty on Turkish steel imports has been halved to 25 percent as of May 17 has paved the way for Turkish mills to return to the US market. Accordingly, Spanish rebar suppliers’ competitive power in the US will decline as this development will exert downward pressure on prices from all suppliers in the US market, including local mills.
€1 = $1.12