US rebar market - Growing inventories drag down import pricing

Oversupply is plaguing the import rebar market, especially in the Gulf region, and as a result, import offering prices have dropped by $5 /nt ($5.50 /mt or $0.25 cwt.) since last week. Import rebar offers now range from $26.50 cwt. to $27.50 cwt. ($584 /mt to $606 /mt or $530 /nt to $550 /nt) FOB loaded truck, in US Gulf ports. Prices are about $0.50 cwt. higher in the East Coast ports. Rebar demand in the US is still decent, but there are too many import shipments coming in, and this will create an oversupply for the next couple months. Some shipments to favorite rebar terminals are even being refused because these terminals don't have enough storage space for influx of shipments coming in. So far, traders are not being too aggressive, but both the Turkish and the Asian mills are getting desperate to sell to the US. These markets currently have no other outlet to sell to since the Middle Eastern and Southeast Asian markets are still very quiet. New construction is beginning to slow down even in Dubai, a traditional outlet for Turkish exports. As the rosy pictures from major rebar markets are turning dark, the pricing trend for import rebar is remains slightly down. The US domestic rebar pricing, on the other hand, is still stable. Demand is decent, and despite the bloated import supplies, no more significant domestic price increases or decreases are expected to occur for the next few months. Domestic rebar producers are somewhat protected by many outstanding antidumping orders against countries like China, Ukraine and Moldova. Also, the "Buy American" clause in federal and state projects is another kind of trade barrier against competitive rebar products from the rest of the world. Domestic rebar prices still range from $27.90 cwt. to $28.40 cwt. ($615 /mt to $626 /mt or $558 /nt to $568 /nt) ex mill, and will stay at this range until at least the end of September. Usual price extras apply for smaller sizes.