Import rebar traders in the US are feeling the pinch, as there are still a lot of unsold tons on the ground waiting to be absorbed, most purchased at a higher cost than the price they now go for on the spot market. For that reason, spot prices on the import rebar market are not expected to drop much further; however, offering prices for future deliveries are still trending slightly down. While US rebar demand is weak, Turkish rebar mills are seeing decent demand from their home market, which is starting to firm up, and from destinations outside the US. Therefore, Turkish mills want to raise their asking prices for the US, a sign that import prices may be close to turning around.
For the time being though, US demand is not strong enough for customers to pay higher prices. Since last week, most import rebar offering prices have not changed, with offers 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. Data from the US Import Administration show that July was another big import month for rebar, as many import shipments arrived that were purchased months earlier when demand was stronger.
Preliminary license data show a total of 224,400 mt of rebar imported in July, compared to 257,400 mt in June 2007, and 191,500 mt in July 2006. The top import rebar sources in July 2007 were: Taiwan, at 69,479 mt; Japan, at 39,408 mt; Turkey, at 31,566 mt; Mexico, at 24,827 mt; and Thailand, at 18,198 mt. (Licensing data collected through July 31, 2007) On the domestic side of the market, shredded scrap prices in the US are expected to remain more or less stable this month, but even if they were to rise slightly, the domestic rebar market is not strong enough for rebar prices to register an increase, sources say.
Buying activity for domestic rebar remains very slow, and so the pricing trend remains slightly down despite the steady scrap prices. Officially, domestic rebar prices will not change for August deliveries, though discounting for select customers continues. A price decrease is not out of the question for September shipments or even for sometime in August. Price decreases are normally effective immediately upon announcement. For now, most domestic rebar offers will continue to range from $31.90 cwt. to $32.40 cwt. ($703 /mt to $714 /mt or $638 /nt to $648 /nt) FOB mill.