US rebar market – Import market takes a breather

Neither domestic or import rebar prices have increased since last week, as both markets have begun to show signs of losing steam. The import pricing trend is still neutral for now. It is obvious that the high price expectations of Turkish mills are not meeting with buyers anymore. Most buyers have filled their requirements until mid- fourth quarter and are not rushing to make purchases anymore. If the buyers continue to act coy, prices may begin to slip a bit in the upcoming weeks. This week, prices for import rebar remain at a range of $27.25 cwt. to $28.25 cwt. ($601/mt to $623/mt or $545/nt to $565/nt) FOB loaded truck in US Gulf ports. Preliminary census data from the US government shows that the five countries from which the US imported the most rebar from in the month of May 2006 were: Turkey, at 88,478 mt; Japan, at 22,336 mt; Taiwan, at 20,133 mt; Dominican Republic, at 11,512; and Germany, at 5,445 mt. Domestically, demand remains good enough that no price decay is expected. However, the price increases will be only moderate from summer onwards, with one more price increase anticipated for August. After that, prices should level off and only move up or down if the scrap market registers significant ups or downs. Also, competing products such as wire mesh have not gone up in pricing as much as rebars, and some rebars may be replaced with structural mesh. This will eventually have a negative affect on the rebar demand as well. June prices for domestic rebar still range from $27.50 cwt. to $28.00 cwt. ($606/mt to $617/mt or $550 /nt to $560/nt). These are base prices, ex-mill. Smaller sizes carry hefty extras.