Bolstered by last week’s ruling by the US DOC that effectively tossed out the countervailing duty portion of the rebar trade case against Turkey, Turkish mills have become more aggressive with prices to the US, dropping CFR offers by about $15/mt. However, traders tell SteelOrbis that the price drop has not entirely made its way into import sales prices in the US, primarily because US buyers expect offers to drop even further. However, if someone didn’t want to take the gamble and opted to book now, new offers would likely be around $30.00 cwt. ($600/nt or $661/mt) DDP loaded truck in US Gulf ports or less. Mexican mills are also eager for orders, with deals available under the current general range of $32.00-$33.00 cwt. ($640-$660/nt or $705-$728/mt) FOB loaded rail car. Meanwhile, offers from Taiwan have also come down in the last week, but offer prices around the level of $32.50 cwt. ($650/nt or $717/mt) DDP loaded tuck in US West Coast ports aren’t quite attractive enough, considering the high cost of unloading on the West Coast.
As for the domestic market, US rebar spot prices are still hovering at $33.50-$34.50 cwt. ($670-$690/nt or $739-$760/mt) ex-mill, although prices could trend downward soon if predictions of a not-so-negligible scrap price decrease comes to pass next month. Already, US spot prices are vulnerable to plunging import prices, and sources tell SteelOrbis that mills are already courting larger customers with discounts to keep their business stateside.