The Turkish domestic rebar market, having experienced an increase until early November, took a breather this week. With traders' cashing in on good profit margins, a price level of up to TRY 840-850/mt including VAT ($606-613/mt excluding VAT) has been approached in the Izmir and Iskenderun areas. However, most mills have been keeping their prices at the level of $630/mt excluding VAT. The market is experiencing a lack of activity due to the approach of the religious holiday. It is expected that the market will gain momentum again after the holiday in question.
Turning to the Turkish rebar export market, offers in a price range of $620-625/mt FOB were heard in the past week. However, the European market is not yet strong enough to accept this level. Still, some sales were concluded to the Middle East at these prices. On the other hand, the Turkish producers were giving offers to the UAE in the price range of $670-675/mt CFR on a theoretical basis coming up to the weekend. It has also been reported that some sales at the price level of $670/mt CFR on a theoretical basis have been concluded.
In the Iberian Peninsula, producers have been trying to maintain the upward trend which commenced last week. The producers are attempting to hike their base prices to €250/mt (€470/mt ex-works for 12 mm rebar). Although it seems difficult to achieve this increase as Christmas is approaching, both rising raw material prices and increasing import offers may help this to happen.
Prices in the Italian rebar market have started to stir a little. The base prices, which have been at €200-210/mt ($293-307/mt) in recent weeks, have upped to €210-220/mt (€405-415/mt ex-works). The producers are targeting a hike in these prices to the level of €230/mt ($336/mt).
Looking to the southern Europe export market, the Italian producers increased their offer prices to €415-420/mt ($607-615/mt) FOB. However, due to the fact that Christmas is near, most mills are planning to stop production. For this reason, the Italian producers are not aggressive in either the domestic or the export markets. Some of the Spanish producers are out of the export market since temporary production stops will take place due to Christmas. It is heard that offers from Portugal are above €410/mt $600/mt).
On the other hand, some activity is being observed in northern Europe. German producers are trying to increase their prices a bit; however, they have not yet been successful since some sales with lower prices have been concluded to local trading companies in past weeks. In the Baltic region, previous sales to northern Europe were at the level of €390/mt ($571/mt) in past weeks. However, some producers in the Baltic region have increased their prices to above €410/mt ($600/mt) FOB.
Some activity has been started to seen overall in Europe since the Far East, Turkey and Middle East markets have experienced a revival. Most market players think that the major market momentum will be established in the post-Christmas period.