Difficult week for Turkish rebar exporters

Friday, 30 January 2015 17:23:05 (GMT+3)   |   Istanbul
SteelOrbis has been informed that Turkish rebar offers to the export markets have declined by $10/mt over the past week to around $480-485/mt FOB. Market sources state that in the current week demand for Turkish finished steel in the foreign markets has been quiet and sales have slowed down further, mainly caused by the sharp declines seen in scrap prices. Additionally, the pessimism among Turkish rebar exporters has increased in line with with the declining trend of import billet offers. Turkish rebar export offers have been strongly impacted by the weakness of scrap and billet prices. 

Market sources report that transaction activity has failed to improve despite the declines seen in rebar offers, while exporters have had difficulties finding buyers even for small tonnages at the $480/mt FOB level. Market players state that in the UAE market some purchases for a total 25,000 mt of rebar have been concluded at $485-490/mt CFR on theoretical weight basis, while most UAE-based buyers are reluctant to conclude deals at these price levels but instead are waiting for more attractive rebar offers from Turkey.

Meanwhile, Turkish rebar offers to the US have decreased by $5-10/mt compared to last week to $500-510/mt CFR on theoretical weight basis. This price range is reportedly very close to buyers' price ideas and so new transactions may be concluded in the coming days. On the other hand, political tensions in Yemen have continued to exert a negative impact on trade in the country and Yemeni importers still prefer to stay away from the market, meaning reduced export opportunities for Turkish rebar exporters.


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