NEW YORK U.S.
ports are poised to receive up to 100,000 tonnes of reinforcing
bar from Turkey in January, three traders have confirmed
independently, despite the threat of imminent duties as a
result of an ongoing trade investigation against imports from
Turkey and Mexico.
The imports will be
shipped on three vessels scheduled to sail from Turkey in
December and arrive at U.S. ports in January if there are no
delays, traders said.
The order sizes range
from around 2,000 tonnes to about 34,000 tonnes, depending on
the importer, with the total tonnage likely ranging between
90,000 and 100,000 tonnes.
The importers run the
risk of facing countervailing duties, which could be imposed as
early as late December (
amm.com, Oct. 30). If the shipments are late, they
also might be required to pay anti-dumping duties, which could
be determined as early as Feb. 28.
At least four
companies are involved in the deals, which were all made within
the past month.
"I think theyre
crazy. Everyones got their own risk appetite, but this
seems pretty risky," said one trader who is importing rebar
from other countries.
"They took the risk
and they baffled the market. Everyone was scratching their
heads. Why would they take such a risk all of a sudden?" said a
second trader who is importing material as part of the January
arrivals but only a small quantity.
Even if the shipments
are on time, domestic rebar producers that filed the trade
complaint might claim critical circumstances, which could
result in the imposition of retroactive duties on the imports,
making the shipments especially risky, traders said.
producers plan to "aggressively" examine their options for
imposing retroactive duties, AMM has been told.
Department would consider at least a three-month period,
beginning with the filing of the petition Sept. 4 and comparing
it with a period of equal duration prior to the filing,
according to departmental guidelines. A 15-percent increase in
import volumes over the two periods would constitute a massive
surge, although seasonal factors are considered.
Imports of Turkish
rebar surpassed 100,000 tonnes in two separate months earlier
this year, reaching 106,071 tonnes in March and 101,094 tonnes
in May, according to data from Commerces Enforcement and
Compliance division. Imports in September, the most recent
month for which data is available, totaled 64,951 tonnes,
according to preliminary data.
"People think this is
the last go-around that the Turks are doing, and they jump on
that," a third trader said.
The material is
scheduled to be shipped to several ports, including Baltimore,
Fort Lauderdale, Houston and New Orleans, at prices ranging
from about $605 to $620 per tonne ($549 to $562 per short ton)
c.i.f., depending on the port and volume, traders said,
reflecting higher prices compared with orders booked earlier in
"I think several
trading companies each thought they would be the only one to
squeeze in one last Turkish shipment," a fourth trader said.
"Since several had the same idea, we end up with 100,000 tonnes
arriving in January."