Although certain countries are striking deals with the US for import quotas in exchange for permanent exemption from Section 232 tariffs, the announcement earlier this week that a decision on further exemptions will be delayed until June 1 has left the US domestic rebar market mired in uncertainty for another month. Turkey is still subject to the 25 percent tariff, and with Italy and Mexico’s status still up in the air as negotiations continue, US rebar mills are reportedly poised to take advantage.
Sources tell SteelOrbis that US rebar mills will “very likely” announce another price increase in the near-term, “just because they can.” The amount of the increase is estimated to track closely to recent $1.00 cwt. ($20/nt or $22/mt) price increases, although an expected slight drop in US domestic scrap prices this month “probably won’t be a factor.”
Until further announcements are made, US domestic rebar spot prices are still trending around $41.50-$42.50 cwt. ($830-$850/nt or $915-$937/mt) ex-mill for small to medium-sized buyers, and around $37.00-$38.00 cwt. ($740-$760/nt or $816-$838/mt) ex-mill for large distributors.