Demand for Turkish rebar in the export markets has increased slightly after the Feast of Sacrifice holiday as we predicted, though it is still at weak levels. However, with the rebar export deals concluded during the past week, Turkish rebar offers to export markets have increased by $10/mt week on week to the range of $350-380/mt FOB.
Early this week, the Rebar Trade Action Coalition, a coalition of US rebar producers, filed petitions asking the US Department of Commerce and the US International Trade Commission (USITC) to conduct antidumping investigations into imports of Japanese, Taiwanese and Turkish rebar, and a countervailing duty (CVD) investigation into imports of Turkish rebar. Even though there are two other countries included in the AD duty investigation in the US - which is one of the biggest target markets for Turkish exporters - there are reports in the market that the filing of US-based producers is targeting Turkey specifically. Following the filing, the USITC has initiated AD and CVD investigations, prompting US-based buyers to increase their inquiries for Turkish rebar in order to build up their inventories before any decision is made on additional duties. Meanwhile, this week two Turkish steel producers have concluded rebar sales to the US, each for 25,000 mt at $385/mt CFR on theoretical weight basis. Despite the week-on-week decrease in Turkish rebar export prices to global markets, Turkish producers’ prices for the US market have moved upwards.
Meanwhile, in the United Arab Emirates (UAE) - the other major target market for Turkish rebar exporters - traders have revised their domestic prices downwards after the Feast of Sacrifice holiday, following the price reductions announced by local producer Emirates Steel Industries (ESI). The downtrend in the UAE domestic rebar market has exerted pressure on Turkish rebar exporters’ offers, with Turkish exporters’ prices for the UAE decreasing by an average of $10/mt week on week to the range of $360-365/mt CFR on theoretical weight basis. However, UAE-based buyers currently continue to exert downward pressure on Turkish rebar offers, since their inventories are on the high and they still consider the current Turkish price levels to be on the high side.
On the other hand, according to market sources, a Turkish steel producer has concluded a deal to Egypt for 20,000 mt of rebar at $390/mt CFR on actual weight basis and this price level is $5/mt lower than the previous price level seen in early September.