Despite the lack of competition from alternate sources of imported rebar to the US like Mexico, Turkish rebar offers eroded slightly this week, dropping by about $0.25 cwt. ($5/nt or $5.50/mt). Traders tell SteelOrbis that part of the reason for the downtrend is the vulnerability of US domestic spot prices--although the margin between the two is still ample, Turkish mills are reportedly trying to maintain their market share while they can, just in case the US DOC sets higher final margins on them later this summer. The new Turkish offer range for rebar to the US is now at $29.25-$30.25 cwt. ($585-$605/nt or $645-$667/mt) DDP loaded truck in US Gulf ports, and sources tell SteelOrbis the softening might not be over.
The US domestic spot range for rebar, meanwhile, has not shifted downward in the last week, but distributors tell SteelOrbis that lower-priced material is still circulating in the market. This has reportedly given buyers an incentive to push for deals below the range of $34.25-$35.25 cwt. ($685-$705/nt or $755-$777/mt) ex-mill, although the success of such negotiations are subject to tonnage size and other customer-specific factors. With scrap prices seeming to have hit bottom, sources tell SteelOrbis there is little chance the overall range will falter, but with import offers as attractive as they are, US mills will have to think twice before taking advantage of any scrap uptrend that occurs in the near future.