The awaited reawakening of activity in the Turkish domestic rebar market has finally taken place and the domestic prices have now started to attain the price levels of exports, reaching YTL 1,060-1,070/mt including VAT. Though real demand is still not sufficient, the approaching spring is expected to be a supporting factor in this direction.
Export offers early this week were at $750-760/mt FOB, met by a somewhat weak demand. However, we can say that the market changed rapidly throughout the week in question. Deals to Singapore at $790/mt CFR and to the UAE at $780/mt CFR, both on theoretical weight basis, have been concluded. The actual weight basis equivalent of these deals is $750/mt FOB and above. Toward mid-week, firm bids from the Far East and Africa started to be received at $760/mt FOB. However, most mills hesitate to make any offers given the current quick upward moving market conditions.
The import rebar price in the UAE, including 3-4 months of deferred payment, is at AED 3.150/mt ($858/mt) on theoretical weight basis, excluding VAT, delivered to site.
Not much change has been observed in the domestic prices in the UAE market compared to last week; however, it is thought that the increasing import activity may soon give a lift to the domestic prices. Following the deals concluded from Turkey this week at $780mt CFR level in this market, the Turkish producers seem to be aiming at $800/mt CFR theoretical for their new offers.
The price of rebar in the Turkish and Middle East markets moved up very quickly this week. The trading companies, and importers in particular, being of the view that prices had risen very strongly in the Middle East, initially kept their purchasing activities to a minimum in February. However, scared by the new iron ore contract prices, these importers rushed into the market to make purchases, thereby supporting the already climbing prices.
With the coming of March, it is heard in the market that Arcelor Mittal Kriviy Rih will increase its prices, which are currently in the range of $730-740/mt FOB. In this event, the Syrian, Lebanese and Jordanian markets may become highly active. Also, the increasing strength of the Russian market may also push up prices in Belarus, Moldova and Latvia.