Turkish domestic rebar prices are experiencing ups and downs in parallel with the fluctuations in the US dollar exchange rate. Prices for 12 mm rebar in Turkey's Izmir and Iskenderun regions are at TRY 930-940/mt ($600/mt + VAT) ex-works, including VAT. Producers in the Marmara region are offering rebar on a US dollar basis at $610/mt ex-works, excluding VAT. Although the fluctuations in the global financial markets have caused a short break in domestic demand, market players expect demand to return to former levels soon.
Turkish mills are offering rebars for export at $590-600/mt FOB on actual weight basis for October shipments to destinations other than the US and Gulf markets. Turkish rebar export offers rose to above $585/mt FOB in the first week of August due to the rises in scrap and billet prices. There have not been many bookings concluded at this level. The US market has been calm and Europe is still on holiday. However, Turkish producers consider that Europe will conclude purchases post-holiday and that the Persian Gulf will complete huge purchases soon.
Although billet and scrap prices have risen in the Middle East, so far there is not much activity seen in this region.
Prices in the Saudi Arabian market have remained unchanged compared to early August. The price level of 8-32 mm rebar in the domestic Saudi Arabian market is at SAR 2,400-2,650/mt ($640-707/mt) delivered to warehouse on theoretical weight basis, including five percent VAT. Saudi Arabia's offer levels for large diameter rebars to the UAE are at AED 2,335/mt ($636/mt) delivered to warehouse. Market players expect the Saudi Arabian market to rally in late August or early September. Furthermore, the revival in the UAE market and other Gulf countries may have a positive effect on the Saudi Arabian market.
The price level of imported rebar in the UAE market is at around AED 2,370/mt ($645/mt) delivered to site on a theoretical weight basis for three-month deferred payment, excluding VAT. Prices, which deteriorated to AED 2,300/mt ($626/mt) in late June/early July, are now higher. If customers in the UAE accept the rising import prices, domestic retail market prices may record a slight movement. Furthermore, domestic rolling mills may announce a price rise in late August due to the increasing billet prices. Turkish producers' offer levels are at $620/mt CFR and above on theoretical weight basis for October shipments.
The southern European market is still inactive due to the continuing holiday period. Although some players in this region have returned from holiday, not much activity has been seen this week. However, the fact that, excepting Portugal, the stock levels in other southern European countries are very low may cause a revival in southern Europe.
After the rises seen in billet and scrap prices during August, Turkish rebar in particular has registered some increases. Turkish producers have concluded sales to the Middle East, Balkans and Russia at higher levels compared to July levels. However, generally there has not been much revival in the Mediterranean and Middle Eastern markets. Southern Europe was out of the market because of the holiday period. The price rises concluded in the Middle Eastern markets were not in line with expectations. Producers consider that prices will begin to accelerate when the holiday period comes to an end and when all regions have returned to the market. On the other hand, some trading firms consider that the US market is not very strong, and if a good post-holiday return is not seen in Europe, the market may not show the expected movement.