As the May 1 deadline for Section 232 tariff exemptions approaches, many in the US import rebar market are waiting for additional clarity. Sources tell SteelOrbis that countries on the original tariff exemption list—including significant sources of US import rebar such as Italy and Brazil—are likely to work out a quota agreement as an alternative to tariffs, and the effect on rebar prices in the US could be “immediate.”
Even if US import rebar from sources such as Turkey maintain the 25 percent tariff, the existence of lower import rebar prices—even from few sources—will remove much of the leverage US domestic rebar mills currently have to raise prices. Already, sources are predicting the most recent $1.00 cwt. ($20/nt or $22/mt) price increase for US domestic rebar “could be the last one” of the months-long uptrend.
Until May 1, import rebar prices in the US have remained mostly stable this week, with offers for imported rebar in the US domestic market from Italy 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 Turkish rebar offers are still “under negotiation,” some sources say they are hearing offers that are “surprisingly attractive” considering the 25 percent tariff and existing AD/CVD duties, at levels below Italian offers.