As NAFTA renegotiations continue this week after failing to conclude at the end of August, buyers in the US import rebar market are awaiting developments that could lead to renewed interest in Mexican rebar. Currently, import offers for Mexican rebar in the US domestic market are trending at about $40.00 cwt. ($881/mt or $800/nt) DDP Houston.
Sources say that in the event of a quota deal or entire revocation of Section 232 tariffs on Mexican imports, Mexican mills might not immediately drop prices by 25 percent in order to “stay on the DOC’s nice side,” but the certainty that would result from a firm trade deal would be enough of an advantage over other import rebar sources still subject to trade uncertainty.
As for other import rebar offers to the US, sources say prices are stable from Italy and Spain, still ranging between $41.00-$42.00 cwt. ($904-$926/mt or $820-$840/nt) DDP loaded truck at US Gulf ports.