Although demand and offer prices within the US import rebar market have not changed in the last week, some sources are indicating that according to certain news developments, the stable trend might not last much longer. Comments from trade representatives in the US, Canada and Mexico have suggested the latter countries will soon be exempted from Section 232 tariffs while the three respective legislatures work on ratifying the new USMCA trade deal. Rebar traders in the US are particularly interested in Mexico’s exemption, which would return the country to “serious competitor” status in the US rebar market.
Currently, most US imports of Mexican rebar are destined for the US West coast, where steel prices in general are typically higher and the market is amenable to Mexican product, even with the 25 percent tariff included. But if the tariff is eliminated, Mexican rebar is expected to regain its long-lost foothold in the US Gulf and Midwest market.
For now, most US import rebar is coming from European sources, with offer prices from Italy and Spain still around $34.50 cwt. ($761/mt or $690/nt) DDP loaded truck at US Gulf ports.