US rebar market – Imports inch closer to domestic prices

Import rebar prices have increased by approximately $1.00 cwt. ($22 /mt or $20 /nt) since last week, with the pricing trend still remaining strongly up. After the latest price increase, import rebar prices now range from $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. Turkish and Asian offering prices are still on the rise, and there is hardly any tonnage left for March shipments. Import prices are becoming at least as expensive as domestic prices, and if the import market continues in this strong vein, import prices could soon be even higher than domestic prices. Traders are already reporting that they are looking to buy domestic rebar instead of imports. Strong billet prices and excellent demand from the Middle East and southern Europe are fueling this rapid rise for international rebar prices. Meanwhile, domestic prices have not increased since last week. There has been very little domestic sales activity recently, as it is still very cold in the North and Midwest regions of the US. Still, the domestic rebar market remains markedly stronger than the wire rod market, even though raw material costs are the same. The reason for the rebar market's strength is the high demand from the construction sector. Fabricators report healthy backlogs, and it looks like the market will be very busy by the springtime when new construction projects ramp up. Also, while the housing market is still soft, there are reports of improved housing starts this month. For now, domestic prices still range from $27.40 cwt. to $27.90 cwt. ($604 /mt to $615 /mt or $548 /nt to $558 /nt). The usual price extras apply for smaller sizes and grade 60.