After declining slightly in our last report a week ago, US import rebar offers have stabilized in the last week, with steady demand. However, availability for already-arrived material is drying up, and sources say traders might be willing to be flexible with future orders once position inventory is depleted. Already, import rebar permits for September are down about 60 percent from August census data, and with Turkey accounting for zero tons in October so far (due to their Section 232 tariffs increasing to 50 percent in August), US rebar buyers might have fewer supply options for the remainder of Q4.
However, the import situation could change if current rumors in the market regarding Section 232 tariffs turn out to be true. According to some sources, US domestic mills are pressing the Department of Commerce to adopt a permanent quota system in place of the tariffs, since higher import prices did not slash import levels as much as they hoped. While a quota system would immediately lower offer prices for US steel imports, any limits placed on imports would end up benefiting US mills near the end of each year when the quotas are exhausted.
Until any new developments in the Section 232 tariffs are announced, US import rebar prices are expected to remain relatively stable with few ups and downs for the remainder of the year. Current import rebar offers in the US market from Italy and Spain are still around $38.50-$39.50 cwt. ($849-$871/mt or $770-$790/nt) DDP loaded truck at US Gulf ports, while prices for currently available inventory at the ports from the same countries remain around $36.00-$37.00 cwt. ($794-$816/mt or $720-$740/nt) DDP loaded truck in the Gulf, and about $1.00 cwt. ($22/mt or $20/nt) higher on the East coast.