With domestic demand for finished steel in
Turkey reviving slightly this week following the appreciation of the Turkish lira against the US dollar, Turkish steel mills' demand for import scrap has once again increased. As a result, having declined since the first week of April, import scrap quotations in
Turkey have again started to rise. At the beginning of the current week, Turkish steel producers'
rebar export prices had decreased by $5/mt on the lower end to $415/mt FOB but, with the rises seen in import scrap prices, Turkish mills have once again increased their
rebar export quotations to the previous levels recorded last week. Currently, Turkish steelmakers'
rebar export offers are at $420-460/mt FOB on actual weight basis.
Turkish steel producers'
rebar offers to the United Arab Emirates (UAE) were at $435/mt CFR on theoretical weight basis at the end of last week, while they declined to $425-430/mt CFR at the beginning of the current week. This decline in prices has provided Turkish steel mills with a price advantage and so they have been able to conclude sales to the UAE. A Turkish steel mill has concluded a deal to the UAE for 6,000 mt of
rebar at $428/mt CFR, while the same steel producer has also concluded a second sale to the UAE for 18,000 mt of
rebar at $425/mt CFR, both on theoretical weight basis. On the other hand, following the rises in import scrap prices, Turkish steel producers have now increased their
rebar offers to the UAE by $5/mt on the lower end to $430/mt CFR on theoretical weight basis. It is believed that UAE-based buyers may conclude transactions for Turkish
rebar at this price level with the expectation of a further increase in Turkish
rebar quotations due to the upward movement of import scrap prices in
Turkey.
During the past week, Turkish steel mills'
rebar offers to the US have remained unchanged at $485-490/mt CFR on theoretical weight basis. No revival in demand for Turkish
rebar in the US market has been observed in this period, while market sources report that US-based buyers' firm bids are at $475-480/mt CFR on theoretical weight basis. The preliminary antidumping (AD) margins announced for Turkish
rebar in the US were seen not to be a problem for Turkish
rebar sales and right after the announcement Turkish mills had concluded deals in the US. However, the possibility of new AD margins after the final determination of the investigation, which will be announced on May 15, has caused US-based buyers to maintain a cautious stance. Similarly, Turkish steelmakers are waiting for final margins to be announced before determining their price strategy for the US.
As uncertainties regarding the AD investigation against Turkish
rebar continue to be observed in Egypt, market sources also report that most Egyptian buyers lack the financial ability to conclude import purchases due to the scarcity of foreign currency reserves in the country. It is observed that Turkish mills are opting to give fewer
rebar offers to this destination, while their offers have remained stable week on week at $440/mt CFR on actual weight basis. Due to the abovementioned problems, Egyptian buyers' demand for Turkish
rebar, which had been weak for a long time but increased slightly last week, has once again declined and is currently at very low levels.
At the beginning of this week, Turkish steelmakers' offers to markets where they usually sell smaller tonnages decreased by an average of $5/mt compared to the price levels recorded at the end of last week to $415-420/mt FOB on actual weight basis. Following the latest import scrap deals in
Turkey, Turkish mills'
rebar offers to these markets have increased to $420-425/mt FOB on actual weight basis. According to market sources, a Turkish steel producer concluded a
rebar sale to Israel before the rises in question. Meanwhile, most buyers in Africa, Lebanon, Yemen and Romania, where Turkish mills make regular sales for smaller tonnages, are waiting for a clearer price trend to emerge and are in no rush to conclude new purchases.