While current tariff-exempted sources of US import rebar continue to work toward striking permanent deals with the US and other countries lobby to get on the Section 232 exemption list, US domestic rebar mills are reportedly “thrilled” with the prospect of widespread import quotas.
In the aftermath of the Section 232 decision, higher prices for import and domestic material has not led to an immediate decrease in demand—on the contrary, sources report continued strong demand, joined by tight supply to bolster higher rebar prices. If major import sources agree to quotas instead of tariffs, sources say it will lead to supply shortages at the end of the year, which would give US rebar mills another opportunity to raise prices.
Already, a slight drop in US domestic scrap prices this month has not dissuaded US rebar mills from considering another price increase, which sources predict will be around $1.00 cwt. ($20/nt or $22/mt). Until then, US domestic rebar spot prices are stable week-on-week in the range of $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.