According to market sources, ex-Turkey rebar offers to the export markets have softened by $5/mt since last week to $555-565/mt FOB on theoretical weight basis. Market sources state that demand in the global markets has started to slow down, while Turkish rebar producers have been unable to maintain their firm stance on their prices due to weak demand and slow transaction activity.
As of this week, inquiries have been reported from North Africa for small tonnages of Turkish rebar, while Turkish producers are facing stiff competition from aggressive ex-China offers. Chinese rebar offers to North Africa are currently at $465-460/mt FOB.
With the continuing crisis in Iraq - the main market for ex-Turkey rebar exports - rebar producers in Turkey's Iskenderun region are now targeting their domestic market instead. However, no improvement is expected in the long steel market in the summer season due to the slack transaction activity in the local Turkish market and due to Turkish producers' reduced profit margins.
The outlook for the Turkish rebar market is expected to become clearer in line with developments in Iraq and the anticipated improvement of demand at the end of Ramadan. Meanwhile, demand for rebar in the export markets is not expected to improve in the short term.