News this week that the US and EU have agreed to a tariff-rate quota system to replace the current 25 percent tariff on steel imports from Europe has not shaken up the US import rebar market as much as some might have assumed. Sources tell SteelOrbis that European mills don’t necessarily need to reduce prices by 25 percent due to strong demand, and even if import offers do start to decline, the margin between EU rebar offers and US domestic prices isn’t wide enough to have a significant impact on the market.
However, other sources say that the news “virtually guarantees” that US domestic rebar prices will not rise again for the rest of the year, even if scrap prices rise. Stable US prices could damper motivation to order significant import tons, but for now the market is in wait-and-see mode as the new policy is implemented. Until then, US import rebar offers are unchanged week-on-week at $45.50-$46.50 cwt. ($1,003-$1,025/mt or $910-$930/nt) DDP loaded truck in US Gulf ports from Turkey and $46.00-$48.00 cwt. ($1,014-$1,058/mt or $920-$960/nt) DDP Houston from Mexico.