US merchant bar market - Imports start to soften

Similarly to the domestic rebar market, the domestic merchant bar market is still strong despite Nucor's move to keep prices stable next month. Merchant bar demand from the construction sector is still strong, and the pricing trend is still slightly up, as the market is strong enough to see a small price increase next month. Most domestic merchant bar offers will continue to range from $30.90 cwt. to $38.45 cwt. ($681 /mt to $848 /mt or $618 /nt to $769 /nt), depending on size, shape and thickness. The import pricing trend is now slightly down, as it is becoming more and more obvious that the current high import offers on the market will not work. Turkish offers have decreased by approximately $1.00 cwt. ($22 /mt or $20 nt) since our last report two weeks ago. There are several reasons for this, one being the decrease of billet prices in Turkey. There are reports that some merchant bar producers in Turkey are procuring cheap Chinese billets to convert to merchant bars. Another reason that the import pricing trend is slightly down is that US buyers don't want to hold any inventories at the end of the year that they will have to pay taxes for. Import merchant bar booking will be light and the numbers will likely continue to soften. Import Turkish offers now range from $31.00 cwt. $32.00 cwt. ($684 /mt to $705 /mt or $620 /nt to $640 /nt) FOB loaded-truck, US Gulf ports, a $1.00 cwt. decrease from our last report. Taiwanese merchant bar offers remain at range from $30.00 cwt. to $31.00 cwt. ($661 /mt to $683 /mt or $600 /nt to $620 /nt) FOB loaded-truck, in Gulf and West Coast ports.