According to market sources, this week Turkish steel producers'
rebar offers to foreign markets have moved on a sideways trend, ranging at $440-450/mt FOB on actual weight basis. Although some Turkish steel producers have been unwilling to reduce their prices below the range of $450-455/mt FOB this week after
concluding rebar export deals for large volumes last week, market players state that
rebar export prices may gain acceptance in the market only below the $445/mt FOB level.
Contrary to the situation last week, demand for Turkish
rebar in the foreign markets has weakened and sales have slowed down during the current week. Turkish producers have only concluded some
rebar deals at $465-470/mt CFR on theoretical weight basis
in the Yemeni market, where demand for Turkish
rebar has been at medium levels. Also,
in the UAE market, which is a significant destination for
Turkey's
rebar exports, buyers have been unwilling to conclude
rebar import deals. As Turkish producers have completed their
rebar sales for short-term deliveries, their nearest delivery times are now for the end of April. However, overseas buyers prefer to avoid the risks inherent in concluding
rebar deals since they think that it is still too early to conclude
rebar deals for late April shipments as the market outlook is not clear for the coming period. As a result, demand for Turkish
rebar in the foreign markets is likely to remain slack and to exert a negative impact on Turkish
rebar exports in the short term.
Meanwhile, in the US market, where ex-
Turkey rebar offers are at approximately $470-480/mt CFR on theoretical weight basis, buyers are not so interested in Turkish
rebar offers since they are not sure if the prices have reached the bottom yet. Also, large volumes of Turkish
rebar have been arriving in the US in these current days, as buyers had postponed their receipt of shipments to the first quarter of this year in order to avoid the year-end tax on stocks. Besides the availability of current positions, these new arrivals are exerting a negative effect on Turkish
rebar offers to the US.