Import rebar offers to the US remained stable over the past week; however, import rebar prices are still trending down in general.
The hysteria in Turkey over declining scrap prices has subsided as the market has finally leveled out, and prices have not dropped as low as some had feared they would. However, the turnaround in Turkey's export rebar prices has not yet taken place.
Some of Turkey's biggest export markets are no longer buying as much rebar -- Southern European rebar prices are down, and the Middle East market has cooled off as well, though perhaps only temporarily. Another concern is the usual summer doldrums in the European market, a time when most steel professionals take long holidays.
The US rebar market is similarly not strong enough to accept a price increase since domestic prices are very close to import prices. Therefore, import prices will continue to come down in small increments over the coming weeks. However, since the highest priced rebars will be arriving in July and August, a large price drop is not anticipated.
Most import rebar offers on the market continue to range from $30.50 cwt. to $31.50 cwt. ($672 /mt to $694 /mt or $610 /nt to $630 /nt) FOB loaded truck, in US Gulf ports. Distributors continue to re-sell import rebar tonnage at prices lower than their replacement costs.
The pricing trend for domestic rebar prices remains slightly down, as rebar demand in the US is still soft, and domestic mills may decide to compete with the imports and reduce their prices slightly in July.
For now and throughout the month of June, most domestic offers on the market 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.