TRY-based prices for rebar have indicated a slight rise due to the increase in the US Dollar/Turkish Lira exchange rate, while stock levels are not very high at the moment. Demand is not very strong, but it is not weak either. Furthermore, lack of goods in some of Turkey's regions has also provided support for the rebar market.
Turkish mills are offering rebars for export at $575-580/mt FOB on actual weight basis for August shipments to destinations other than the US and Persian Gulf markets. The market is currently very slow. The negative trend in the Mediterranean and Middle East is having a huge effect on the Turkish mills.
The price level of imported rebar in the UAE market is at around AED 2,320-2,350/mt ($632-639/mt) delivered to site on a theoretical weight basis for 3- and 5-month deferred payment, excluding VAT. The price levels quoted for Turkish origin rebars are at $590-600/mt CFR on theoretical weight basis. Customers are trying to resist these prices. On the one hand, customers are under pressure to make purchases. On the other, sellers are under similar pressure to sell their goods. The direction which the future market follows will be determined by the outcome of this game of "who will blink first."
Although the list prices of producers have remained unchanged in Italy, it is possible to find base prices at €270/mt ($362/mt). The delivered to warehouse price is at around €465-475/mt ($625-638/mt), excluding VAT. The fact that the Algerian market is not eager for purchases due to its high stock levels is creating difficulty for the Italian market. The Italian producers are anxious to halt the slide in rebar prices and are so now trying to hold prices stable by effacing themselves from the market.
The general slowdown in southern Europe is also being felt in Spain. Although the Spanish producers' base prices of AENOR-certificated 12 mm rebar are at €330/mt ($444/mt), concluded sales are below the list price levels. The delivered to warehouse prices for 12 mm are at €550/mt ($741/mt).
The Russian market, which for a long time showed strong movement in the Black Sea, has started to slow down. Ukrainian mills, which kept their export prices at the same level in June, may also reduce their prices in July due to the softening long products, billet and scrap prices. In early June, Ukrainian mills announced rebar offer levels for July production at $535-540/mt FOB for North Africa and at $575-580/mt FOB for Eastern Europe and Russia.