US import rebar offers have increased slightly week-on-week, but sources tell SteelOrbis that buyers are still largely sticking with domestic mills due to short lead times, even though there is still a significant margin between import and domestic prices. Some sources point to uncertainty regarding the future of Section 232 tariffs, and the hesitance to book material that might arrive once the tariffs are rescinded, but most sources are confident that any action the Biden administration takes on Section 232 will not happen until next year at the earliest.
On the other hand, sources point to the strong possibility of an infrastructure bill finally getting passed this year, which would substantially boost demand for rebar. In that event, sources are certain that US domestic rebar mills would not be able to keep up with demand, and even though the bill would likely include “Buy American” requirements for steel, buyers would still return to the import market to fill other orders.
For now, the import rebar market remains relatively muted while offer prices edge up. US import rebar offers from Turkey are now at $38.00-$39.50 cwt. ($838-$871/mt or $760-$790/nt) DDP loaded truck in US Gulf ports, up $0.50 cwt. ($11/mt or $10/nt) on the lower end of the range. Meanwhile, US import rebar offers from Mexico are also up $0.50 cwt., now ranging from $37.50-$38.50 cwt. ($827-$849/mt or $750-$770/nt) DDP Houston.