Following a downtrend for five weeks now, Turkish mills' rebar export offers have declined to $585-595/mt FOB on actual weight basis as of today, September 19, due to challenging market conditions, decreasing from $595-605/mt FOB early this week, a level which was $5/mt below last week's levels. The current levels in the market are the lowest of the past two years.
As most major Turkish rebar mills are giving offers for September shipments, an indication of light order books, expectations have been raised for a further price cut both for the domestic and export markets.
As can be seen in SteelOrbis Reference Prices, Turkish rebar export offers have decreased to price levels recorded back in late September 2010. Given that these significant price drops have been observed when the euro/dollar exchange rate has climbed to levels of around 1.31, similar to May this year, Turkish mills may witness a narrowing in their export markets due to increased pressure coming from European mills' offers if the exchange rate changes in favor of the US dollar, which would result in lower Turkish rebar offers in return.