As both the US and Turkish rebar markets return from last week’s holidays, sources tell SteelOrbis that inquiry activity is slower than expected, but once serious offers are requested, the price trend will most likely point further downward. Offer prices for Turkish rebar have been stuck in neutral for about a month in the range of $20.50-$22.50 cwt. ($410-$450/nt or $452-$496/mt) DDP loaded truck in US Gulf ports, but gradual downticks are expected in the near term.
Adding to the price pressure, import position availability at the ports is on pace to reach a new high level for 2016. After US rebar import permits from Turkey reached 124,835 mt in June, July’s total—as of the first week of the month—has already reached 76,218 mt. And with most of those position tags coming in at much higher levels than current future offers, it appears the annual Q1 import flood might have a Q3 sequel.