This week, rebar prices on a Turkish Lira basis in the Turkish domestic market started to decrease in parallel with the softening in the $/TRY exchange rate. It was possible to find rebar prices at TRY 915-920/mt ($590-593/mt+VAT), including VAT, from traders in some regions. However, prices on a US Dollar basis have continued their strong trend. 12 mm rebar price was at $590-610/mt ex-works, excluding VAT, at the beginning of the week.
Turkish mills are offering rebars for export to Europe at $590-600/mt FOB on actual weight basis for October shipments. Although the current domestic prices in Europe seem to be hindering Turkish producers' sales for the time being, the expected price rises in Europe will increase the possibility of sales by Turkish producers at these current prices. Moreover, the Balkan markets, which have seen a slight slowdown, may become active in parallel with the expected slight movement in the southern European markets.
The price level of imported rebar in the UAE market is at around AED 2,370/mt ($645/mt) delivered to site on a theoretical weight basis for three-month deferred payment, excluding VAT. The UAE retail sales prices have almost remained unchanged. Although the three-month deferred payment prices are at around AED 2,370/mt ($645/mt) in the market, there are different terms of payment and levels of AED 2,350/mt ($640/mt) and AED 2,380/mt ($648/mt) in the market. Turkish producers' offer levels are at $620/mt CFR on a theoretical weight basis for October shipments. Chinese origin rebar seems out of the market due to the strong Chinese domestic market and high freight rates, and also due to the export tax.
The market situation has not yet become fully clear in the southern European market as the holidays come to an end. However, SteelOrbis has heard that traders' stock levels are very low. Therefore, domestic producers may achieve their sought-after rise.
Italian producers' base prices for the domestic market are at around €260/mt ($355/mt). However, it is possible to find base prices up to €245-250/mt ($335-342/mt). The price level of rebar for medium sizes in the local Italian market is at around €450-465/mt ($615-636/mt) delivered to warehouse in northern Italy, on actual weight basis with 60-day open account, excluding VAT. The current prices seem more hopeful compared to the pre-holiday price levels. Producers are trying to raise base prices to €280/mt ($383/mt) with the support of the increases in pig iron and billet prices.
The current base prices in Spain are at around €280-285/mt ($381-388/mt). The price level of AENOR-certificated B500S 12 mm rebar in the local Spanish market is at around €500-505/mt ($680-687/mt) delivered to warehouse for 30-day deferred payment, excluding VAT. Spanish producers who were active in late July tried to increase their prices to €300/mt. However, they were not able to apply this price level. Producers are targeting a base price of €290-295/mt ($394-401/mt) for the post-holiday period. Producers may achieve their sought-after rise this time since all players are currently in the market compared to late July.
The Mediterranean and Middle East rebar markets have not been able to make a rapid start to the last week of August. However, expectations especially for Europe are positive. If the positive expectations materialize in Europe, this situation may affect the other regions in the Mediterranean and Middle East. Market players are waiting for Ukrainian producers' price announcements for September, in addition to the movements in the Mediterranean and Middle East. If a rise occurs in Ukrainian rebar in parallel with the rises in Ukrainian billet, this situation may also affect North Africa and some Middle Eastern countries.