The domestic rebar market in the US is still very soft, and the increased availability of bargain-priced offers from Mexico isn't helping the situation.
Sources confirm that the cheapest import rebar offers available in the US are from Mexico, and range from $27.00 to $28.00 cwt. ($595 /mt to $617 /mt or $540 /nt to $560 /nt) delivered to Houston. These offers are dragging import spot prices down, though this Mexican material will eventually run out. Also Mexican supply is less than reliable in many cases.
Meanwhile, asking prices from Turkey and Taiwan are still on the rise due to the strong freight rates and rising raw material costs. Still, import rebar traders in the US are losing money since no one will pay amounts anywhere near the foreign mills' asking prices, and the traders are having to deeply discount their prices in order to liquidate their inventories.
New import offers for future delivery (November/December) are still ranging from $29.50 cwt. to $30.50 cwt. ($650 /mt to $672 /mt or $590 /nt to $610 /nt) FOB loaded truck, in US Gulf ports.
Domestic rebar demand is still very slow but has not come to a complete halt. Consumption is soft, but is still stronger than that for many other long products such as wire rod. Domestic prices have remained flat in recent weeks after decreasing by $20 /nt on balance in early August, due to the re-introduction of 20 footer discount. Prices are expected to stay flat into the next month as well with strengthening scrap prices bolstering the rebar market enough to keep prices stable.
Domestic rebar offers are still at a range of $30.90 cwt. to $31.40 cwt. ($681 /mt to $692 /mt or $618 /nt to $628 /nt) FOB mill.