US domestic rebar producers were hoping for steeper margins against Turkish rebar imports in the trade case ruling Monday, and sources tell SteelOrbis that they are unsure if a 2.64 percent levy will be enough to stem the flood of Turkish rebar into the US. Based on current import offers of $29.50-$30.50 cwt. ($590-$610/nt or $650-$672/mt) DDP loaded truck in US Gulf ports, that would amount to less than $1.00 cwt. ($20/nt or $22/mt), which would still leave Turkish import offers far below current US domestic spot prices. Mexican offers, on the other hand, are expected to vanish from the market after being slammed with margins ranging from 10.66-66.70 percent.
US mills were reportedly waiting for the ruling to make a move with their own transaction prices, and although nothing has been announced as of press time, sources still think a $1.00 cwt. increase is likely. However, while US mills have been relatively successful in pushing through increases so far this year, they might start feeling the first tinges of resistance from customers who are relieved that import options are still on the table. Until then, US domestic rebar spot prices are still in the range of $33.50-$34.50 cwt. ($670-$690/nt or $739-$760/mt) ex-mill.