Is demand for US domestic rebar not as strong as mills report?

Friday, 03 January 2014 01:38:24 (GMT+3)   |   San Diego
       

Despite the boost from months of uptrending scrap prices, US domestic rebar mills have touted strong demand as the primary driving force behind their continual, if moderate, increases in rebar transaction prices.  However, some sources tell SteelOrbis that certain large distributors have been able to book orders under $33.00 cwt. ($660/nt or $728/mt) ex-mill, even though most spot prices are in the general range of $33.50-$34.50 cwt. ($670-$690/nt or $739-$760/mt) ex-mill.  End-use demand is decent and expected to strengthen as the winter months give way to construction-friendly spring, but sources point to imports still flowing into US ports as the main detractor from US domestic mill demand. 

New rebar offers from Turkey and Mexico, which await DOC determinations next month, have all but vanished from the US import market, but traders are still expecting shipments and are eager to get rid of them as soon as they hit US shores.  Distributors, fabricators, and end-users in the US are aware of this, and are therefore reportedly holding back from fully stocking their shelves for spring.  Also, alternate sources of imported rebar are not being completely ignored—Portugal and Taiwan are both offering for around $32.00 cwt. ($640/nt or $705/mt) DDP loaded truck in US Gulf ports for future shipments, and while booking activity isn’t what traders would consider robust, it’s enough to suggest that imports won’t vanish completely should Turkey and Mexico get slapped with steep dumping levies.


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