NEW YORK Rebar
buyers are ratcheting up their search for new overseas sources
of the product, as some imports dwindle and time runs out
before potential duties hit arrivals from the two largest
providers to the United States: Turkey and Mexico.
Any Turkish shipments
arriving in the United States in the second half of December or
later could be slapped with countervailing duties, and any
Turkish and Mexican material arriving in the first half of
March could be hit with anti-dumping duties (
amm.com, Oct. 30).
Rebar traders are
turning to such countries as South Korea, Japan and Spain as
likely new sources for rebar if duties are imposed.
Most importers said
they have stopped ordering Turkish material, but one deal was
reportedly reached about three weeks ago that would bring
Turkish material into the Port of Houston at $521 per short ton
($575 per tonne), and into New Orleans at $526 per ton ($580
per tonne) in January.
"I dont know why
(the trading company would) do something like that (buy that
tonnage)," one trader source told AMM. "We wont
take that risk. (Other trading companies) wont take that
Offers from Turkey
have come in at $549 to $558 per ton ($605 to $615 per tonne)
c.f.r., traders said, but most importers are steering clear,
with the timing of shipments from Turkey notoriously
"If you ordered today,
would you get it in by February? Its a crap shoot," one
U.S. rebar buyer said.
"It depends how much
financing you have, but its very risky," a second trader
sources of rebar have begun surfacing. Traders mentioned South
Korea, Spain, Japan, Taiwan and Italy as countries with new
Spanish rebar is
reportedly being offered at around $580 per ton ($640 per
tonne), and South Korean offers have been floated at $567 per
ton ($625 per tonne).
In September, 20,344
tonnes of rebar was licensed for import from Japan, with 5,004
tonnes earmarked for South Korea, according to license data as
of Oct. 29 from the U.S. Commerce Departments Enforcement
The first trader said
Spain might be the next sizable and reliable source of rebar,
naming one Spanish millMegasa Siderúrgica
"Megasa has three
mills in Spain and they have two in Portugal. They move about 2
million tonnes (per year). They dont want to be in the
same category of Turkish mills as far as lowering the price.
They want to make money and they want to increase prices. I do
see them being a big player in the U.S.," he said.
Prices on Mexican
material have reportedly risen about $20 per ton, and traders
said Mexican producers plan to continue shipping material to
the United States for as long as they can.
If duties are imposed
on rebar imports from Turkey and Mexico, the next preferable
source of rebar would be whichever country can offer material
at the lowest price.