Sources tell SteelOrbis that traders have been eager to unload positions at the port due to an expectation of lower offer prices for future arrivals, but position availability is dwindling. According to the latest US steel import data, the US imported 78,964 mt of rebar in July (preliminary census data), compared to 89,114 mt in June (final census data). And as of Aug. 23, the August import permit total has only reached 38,512 mt for the month.
Despite the lower supply of positions, rebar buyers in the US do not appear to be turning to future arrival orders, maintaining a “wait and see” stance due to uncertainty in the market. However, sources say if US domestic rebar mills try to firm up the market with an official price increase next month, imports will likely see an uptick in inquiry activity.
For now, US import rebar offers are mostly stable week-on-week. Offers from Spain are still around $30.50 cwt. ($672/mt or $610/nt) DDP loaded truck at US Gulf ports, offers from Bulgaria and Portugal are around $31.50 cwt. ($694/mt or $630/nt) DDP loaded truck at US Gulf ports, and offers from Mexico are around $30.00 cwt. ($661/mt or $600/nt) delivered to Houston.
However, offers from Algeria have declined by about $0.50 cwt. ($11/mt or $10/nt) in the last week, bringing offers closer to $30.00 cwt. ($661/mt or $600/nt) DDP loaded truck at US Gulf ports. Offers from Turkey have similarly decline by $0.50 cwt. in the last week, bringing offers into the range of $30.50-$31.00 cwt. ($672-$683/mt or $610-$620/nt) DDP loaded truck at US Gulf ports.