After the Trump administration made a last-minute announcement late Monday that Section 232 tariff exemptions will be extended until June 1, the US import rebar market is facing another month of uncertainty. No new countries were added to the exemption list, although the announcement mentioned that “agreements in principle” have been reached with Australia Argentina, and Brazil. Exemptions for Canada and Mexico are still part of the ongoing NAFTA renegotiations, and the announcement also indicated that a deal with the European Union is being “finalized.”
Sources tell SteelOrbis that they have “no idea” what to expect in the next 30 days—June 1 could bring finalized deals with existing exempted countries, new deals with countries still trying to obtain exemptions, or nothing at all. Another delay is “very likely, considering this administration’s overall attitude toward deadlines,” one source said.
As it stands, US import rebar offers from Italy and Mexico are still under exempted status, although offer prices have not changed in the last week. Offers for imported rebar in the US domestic market from Italy are still heard around $38.00-$39.00 cwt. ($760-$780/nt or $838-$860/mt) DDP loaded truck at US Gulf Ports, with Mexican offers heard at about $1.00 cwt. ($20/nt or $22/mt) higher. And while many traders have been in contact with Turkish mills to come up with a new offer price, another month excluded from the exemption list means limited demand for Turkish rebar in the US.