Turkish rebar offers to the export markets have been following a downward trend for the third consecutive week, while Turkish steel producers' rebar export prices have declined by $25/mt on the lower end and by $15/mt on the upper end week on week to $440-470/mt FOB. However, the declines in question have failed to revive demand. It is observed that buyers in Turkish rebar exporters' target markets are unwilling to conclude new Turkish rebar purchases before Turkish mills' scrap purchase quotations become clearer. On the other hand, Turkish steel producers have been focusing on their finished steel sales which are currently slack, while they are unwilling to conclude scrap purchases before seeing improvements in their finished steel sales. Accordingly, activity for Turkish rebar exports has drawn to a standstill.
As of the middle of the current week, Turkish rebar offers to the United Arab Emirates (UAE) have declined by $25/mt compared to price levels recorded on May 23 to $450/mt CFR on theoretical weight basis. It is observed that currently rebar stocks in the UAE market are insufficient to meet domestic demand as UAE-based buyers have stopped their rebar purchases from Turkey as they maintain a wait-and-see stance amid the sharp decreases seen in global billet quotations in May. As a result, UAE-based buyers are expected to restart their purchases in the short term, while putting pressure on Turkish steelmakers to reduce their rebar price levels.
In other target markets of Turkish rebar exporters, particularly the US, even buyers' price inquiries are very scarce since buyers are still postponing their rebar purchases as they believe that prices have not hit the bottom yet.