According to market sources, Turkish rebar offers to the export markets have increased by $5/mt over the past week to $560-570/mt FOB, on actual weight basis. Turkish rebar producers would like to increase their prices due to rising scrap prices, but their offers have mostly remained unchanged amid weak demand in the global markets.
It is hard for demand to improve in the Middle East, the main export market for Turkish rebar producers, due to Ramadan and the increased upheaval in the region. Over the past week, ex-Turkey rebar has only attracted increased inquiries from Egypt. Demand in the UAE market for Turkish rebar has been sluggish due to Ramadan, while UAE buyers are expected to start showing interest in Turkish rebar offers in the coming week. Meanwhile, Turkish rebar offers to the UAE are currently at $560-565/mt FOB.
On the other hand, competition in the Middle East is tougher for Turkish producers due to aggressive ex-China billet and rebar offers, with Chinese rebar offers currently at $460-465/mt FOB. If scrap prices continue their current trend after the Ramadan holiday, Turkish rebar producers are expected to try to increase their prices. For now, an improvement in demand in the export markets appears to be a remote possibility.