Although the TRY prices have decreased slightly in the Turkish domestic market due to the appreciation of the TRY against the US Dollar, US Dollar prices are almost the same compared to the previous week. Producers' 8-12 mm
rebar prices are at TRY 910-955/mt ($545-572/mt+VAT), including VAT, depending on the region. However, the rebars were mostly traded at TRY 910-920/mt ($545-551/mt). Most producers in
Turkey's Marmara and Izmir regions are currently out of the market, since they expect prices to increase.
Currently, Turkish mills are offering rebars for export at $540-550/mt FOB on actual weight basis for late March/early April shipments. Although southern
Europe is not in a position to accept these prices, it has been heard that some small tonnage cargoes have been sold to the United Kingdom at $540-545/mt FOB. Meanwhile, offers from
Turkey's southern region to the Israeli market were at $555/mt CFR and above during the week.
Turkish producers are aiming at the level of $560/mt CFR on a theoretical weight basis in the
UAE, one of the significant export markets. Although it is heard that a small cargo of
rebar ex-
Turkey has been booked in
UAE at $559/mt CFR level for late February/early March shipment, the major importers have not accepted these levels as of January 25. The
UAE domestic producers increased
rebar prices to AED 2,080/mt, excluding VAT, for big-tonnage shipments in March. Higher prices apply for small tonnages. The domestic stockists' offers for
construction firms are close to AED 2,200/mt for three- and five-month deferred payment. The continuous increase in
billet prices may cause domestic producers to increase their prices in April. On the other hand, a mill in
Qatar has not yet given any offers. It seems that he is waiting for the position in the
UAE to become more definite.
Egyptian
rebar offers have increased parallel to Turkish offers, reaching $540-550/mt FOB for mid-March shipments.
Trading firms seem to be surprised at the increases. It is difficult to say that these prices are accepted in east
Africa for the time being. However, if the increase is accepted in the Mediterranean and
Middle East, the price hikes of the Egyptian producers may also find acceptance.
The
rebar base price is still at Euro 330/mt in
Spain. The price level of AENOR-certificated 12 mm
rebar in the local Spanish market is at around Euro 510/mt delivered to warehouse, excluding VAT. Although the producers are trying to increase their prices, traders able to deal with this pressure since they built up large stocks at the previous price levels. Although
Turkey's offers are high, Spanish producers seem to be waiting for a price increase due to the lack of activity in
Italy.
Italian
rebar prices have increased slightly this week. Italian mills have increased their base prices for the local market by Euro 10/mt. Base prices are currently ranging from Euro 270 to 275/mt. The prices for ex-works are at Euro 430-440/mt. Italian offers for Algeria are at around Euro 430/mt. The increase in overseas
scrap offers for
Italy may budge domestic
scrap prices, which have been weak for a long time. This situation may help domestic
rebar prices to increase. Market players in
Italy expect prices to pick up in February.
The
rebar market in the Mediterranean and
Middle East seems to be siding with the producers. The latter are aware of this and seem to be getting a kick out of the situation.
Trading firms, which expected prices to increase in advance, concluded large tonnage bookings at previous levels. Therefore, the
trading firms are currently acting with greater caution. They are not interested in concluding new large bookings before they are sure that the prices will increase further.