In a break from the “small bites” price increase philosophy defining the US domestic rebar market over the past few months, Gerdau Long Steel North America announced a $1.50 cwt. ($30/nt or $33/mt) immediate price boost earlier this week, although the market has reacted skeptically so far. Sources tell SteelOrbis that buyers are holding off on purchases until Nucor officially reacts, especially since the current consensus is that Nucor will only raise prices by $1.00 cwt. ($20/nt or $22/mt)--sticking to the more balanced approach for increases. An announcement from the company should come sometime this week, and whatever amount is decided upon will likely be absorbed into the market immediately. Therefore, while 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, they will be higher within days.
As for imports, sources are raising eyebrows at resurging offers from Turkey. Traders tell SteelOrbis that Turkish mills have decided they “cannot live without” the US market, and are offering prices at slightly less than the crop of alternate import sources. New import offers from Turkey are in the range of $31.50-$32.50 cwt. ($630-$650/nt or $694-$717/mt) DDP loaded truck in US Gulf ports, whereas offers from Portugal are still in the level of $32.00-$33.00 cwt. ($640-$660/nt or $705-$728/mt) DDP loaded truck in US Gulf ports and Taiwanese offers stand at $32.50-$33.50 cwt. ($650-$670/nt or $717-$739/mt)DDP loaded truck in US West Coast ports. Mexico, meanwhile, is staying out of the fray--traders are still not pursuing offers from south of the border, but depending on how successful Turkey is in risking the wrath of the US DOC, Mexican mills might mull a similar strategy.