While not much has changed in the last week in terms of pricing and demand for the US import rebar market, sources say there are some “hopeful” hints on the horizon for lower offer prices. This week, the US International Trade Commission (ITC) announced it is investigating the economic effects of eliminating duties on imports from the European Union. Although the final report is not expected to be completed until March 2019, sources say it’s a “positive first step” toward the potential revocation of Section 232 tariffs. Additionally, the tariffs continue to be a sticking point in plans for the US, Canada, and Mexico to officially sign the new USMCA trade deal—representatives from both Canada and Mexico have expressed reservations about signing it without full exemption from Section 232 tariffs and possible quotas.
Either development could mean a drop in US import rebar offers, but sources say prices will not necessarily revert back to pre-Section 232 levels. Instead of dropping by 25 percent, import offers that are no longer subject to tariffs will likely be “just under” the lowest US domestic rebar prices. For now, US import rebar offers from Italy and Spain are relatively stable in the range of $38.50-$39.50 cwt. ($849-$871/mt or $770-$790/nt) DDP loaded truck at US Gulf ports, while prices for currently available inventory at the ports from the same countries remain around $36.00-$37.00 cwt. ($794-$816/mt or $720-$740/nt) DDP loaded truck in the Gulf.