Ex-
Turkey rebar offers have been ranging at $610-620/mt FOB on actual weight basis over the past three weeks. However, with the strengthening of the US dollar against the euro ex-
Europe rebar offers have become more advantageous on dollar basis and this has placed pressure on Turkish
rebar export offers. Meanwhile, SteelOrbis has learned that Spanish
rebar export offers are currently standing at €480-490/mt ($590-603/mt) FOB, while ex-
Italy rebar offers are at €485-495/mt ($597-609/mt) FOB.
If the euro does not strengthen against the dollar this week, current ex-
Europe offers, which are as low as $590/mt FOB, will place ex-
Turkey rebar offers to soften. However, Turkish steel mills' production capacities offer them an advantage against European steel mills. Because European mills' restricted production rate will likely be insufficient to meet potential high volume orders as they have already reduced their outputs and have pushed forward the start of their summer vacations. On the other hand, if any market activity is observed in
North Africa, especially in
Algeria, this may help the European market to improve slightly, though such positive developments appear unlikely at present.
In the meantime, in the current market conditions ex-
Turkey rebar offers, which have been following a sideways trend at $610-620/mt FOB on actual weight basis, may soften by as much as $600/mt FOB amid pressure from European offers in the coming period.
€1 = $ 1.23