With new offers for US import rebar on pause until final announcements are made in the Section 232 investigation, the last remaining alternative to domestic product for US rebar buyers is a dwindling supply of positions at US ports.
In past years, the first quarter has been infamous for its annual “import rebar flood,” with monthly tonnage levels far surpassing 100,000 mt. This year, preliminary census data show only 86,913 mt for January, primarily from Turkey, Brazil, Mexico and the Dominican Republic. Import license data for February (as of Feb. 26), show a total of only 36,754 mt. Traders tell SteelOrbis that most of the February tonnage consists of direct orders, with few position tons available for spot purchases. As a result, sources believe US domestic rebar mills have “incredible leverage” to continue raising prices, with rumors of another price increase already swirling in the market.
The last heard offers for imported rebar in the US domestic market from Turkey were around $31.00 cwt. ($620/nt or $683/mt) DDP loaded truck in US Gulf ports, and while inquiries are virtually nonexistent, some sources say they’ve heard recent offers from Peru around the same level.