While sources within the US import rebar market predicted sustained stability last week, indications are now pointing toward a resumed upward trend in the near term based on certain market factors.
One factor, according to sources, are steadily uptrending US domestic rebar prices. US rebar mills announced this week a $1.00 cwt. ($20/nt or $22/mt) price increase, effective immediately, which sources say is a signal to offshore rebar producers that US-based rebar buyers are amenable to higher prices.
Another factor is the latest developments in the Section 232 investigation. Last week, US Commerce Secretary Wilbur Ross stated that the investigation will be shelved until Congress achieves tax reform. Sources tell SteelOrbis the odds of Congress managing to overhaul the entire US tax system are slim, judging from their legislative record so far this year. As such, concerns about possible sweeping steel import tariffs are “considerably lessened,” one source said, allowing the market to continue normally.
For now, offers for imported rebar in the US domestic market from Turkey are unchanged in the range of $28.50-$29.50 cwt. ($570-$590/nt or $628-$650/mt) DDP loaded truck in US Gulf ports. But sources say updated price levels are expected after the conclusion of the SteelOrbis Fall Conference and 77th IREPAS Meeting this week.