Buyers in the international market believe that
rebar prices will fall further and so they mostly prefer to wait and watch the market amid the sharp declines in Chinese steel export quotations following the downward movement of global iron ore prices during the past two weeks. As a result, buyers in the export markets for Turkish
rebar are reported to be exerting downward pressure on Turkish
rebar prices. As a result, Turkish steel mills have reduced their
rebar export quotations by $20/mt on the upper end to $420-460/mt FOB on actual weight basis.
Up to the start of March, Turkish steelmakers occasionally concluded
rebar sales to the Far East region as they had gained a price advantage in the region at the end of December for the first time in a long time. Far Eastern buyers' price inquiries for Turkish
rebar and billet had continued until the beginning of April. However, with China adopting an aggressive export price strategy once again, Far Eastern buyers' price inquiries for Turkish
rebar came to a halt at the beginning of April and buyers focused on purchases from Chinese suppliers. Turkish steel producers are not expected to conclude new sales to the region in the short term.
Although the United Arab Emirates (UAE) is usually one of the biggest export markets for Turkish
rebar producers, Turkish steel mills have been finding it difficult to meet with the price expectations of buyers in the UAE for a long time now. As a result, Turkish
rebar export offers to the UAE have continued their downtrend. As of the second half of the current week, Turkish steelmakers'
rebar offers to the country have regressed to the previous level of $435/mt CFR on theoretical weight basis. However, the downward movement of domestic
rebar prices in the UAE has caused UAE-based buyers to show no interest in Turkish
rebar. UAE-based buyers are supplying their
rebar needs from local producers due to their more attractive prices. Accordingly, market sources report that it is impossible for Turkish steel mills to conclude sales to the UAE at $435/mt CFR.
Meanwhile, Turkish
rebar offers to the US have declined by an average of $20/mt week on week to $485-490/mt CFR on theoretical weight basis. However, market sources state that the highest firm bids of US buyers are at $480/mt CFR on theoretical weight basis, as discounts are still available in their domestic market depending on tonnages and buyers. Additionally, buyers are in no rush to conclude import
rebar purchases as they are waiting for the final determination in the antidumping (AD) case against the Turkish
rebar to be announced on May 16.
Turkish steel producers'
rebar offers to Egypt have remained stable during the past week at $440/mt CFR on actual weight basis. Although rumors of deals for small tonnages of Turkish
rebar have been heard in the Egyptian market, buyers are still maintaining their cautious stance as regards new Turkish
rebar purchases due to the ongoing AD case against Turkish
rebar. As a result, demand for Turkish
rebar in Egypt has failed to improve over the past week.
Turkish steelmakers' offers to markets such as Romania, Yemen and Africa, where they usually sell smaller tonnages, have decreased by $10/mt on the upper end week on week to $420-425/mt FOB on actual weight basis. Market sources report that buyers in these markets, where Turkish steelmakers regularly conclude sales, prefer to wait and see as they are concluding purchases only in line with their needs amid the uncertainties prevailing the markets in question.