While many sources of US import rebar are in the midst of raising prices to other export markets, offers to the US are reportedly “on pause” after US DOC Secretary Wilbur Ross publicly released his Section 232 recommendations late last week. Of the three remedy options in the recommendation report, one of them, a proposed 53 percent tariff on all steel imports from 12 named countries, is causing the most concern in the US import rebar market because the list includes two of the top five sources of US import rebar: Brazil and Turkey. The chairman of the Turkish Steel Exporters’ Association stated that a tariff that steep would entirely halt Turkish steel exports to the US. Exports from Brazil would likely evaporate as well.
Donald Trump has until April 11 to choose one of the remedy options (or decline them), and import rebar offers to the US from Turkey and Brazil are not expected to resume until there is clarity in the market. Meanwhile, other sources of US rebar imports are approaching transactions with caution, as another one of the remedy options includes a 24 percent steel tariff on all countries, including NAFTA partners.
Last week, offers for imported rebar in the US domestic market from Turkey were heard around the level of $31.00 cwt. ($620/nt or $683/mt) DDP loaded truck in US Gulf ports, but current offers from a variety of countries have been difficult to ascertain since the Section 232 news was released last Friday.