While Turkey remains mainly out of the rebar import market in the US due to trade restrictions, buyers continue to deal for rebar of various alternative origins, mainly for September shipments.
EU rebar is available for the US customers at $640-645/mt CFR on theoretical weight basis (€440/mt FOB on actual weight basis), from Italy specifically. The most recent ex-EU sale was closed for around 20,000 mt in mid-July from Spain. However, the transaction price was not disclosed to the market.
A steel producer from Algeria, according to market sources, has sold 22,000 mt of rebar for September shipment to the US in the past two weeks at $650/mt CFR on theoretical weight basis, with some financing included in the price.
US buyers continue to conclude deals for rebar from Mexico; in fact, the market share held by Mexican rebar is reportedly increasing as it is subject to a duty of only five percent. Sources say the latest price in the destination is $30/cwt or around $650/mt delivered. “Mexico can supply to the Nola and Houston areas via trucks and railway, but it is the largest consuming market at the same time,” a trader said.
Turkey is also present in the market with offers to the US. However, the trading environment is challenging. While most of the other sellers face a 25 percent safeguard rate, Turkish rebar is additionally subject to AD and CVD rates. “It is close to 40 percent overall for ICDAS, others have maybe a better chance to sell,” a trader said. SteelOrbis has been informed that 5,000 mt has been sold to the US from Marmara at around $640/mt CFR on theoretical weight basis. Players estimate that the supplier will have to collect orders for at least 15,000-20,000 mt in order to ship with favourable freight rates.