Over the past week, Turkish rebar exporters' offers have continued to decline gradually, indicating a decrease of $10/mt to $495-505/mt FOB. With import scrap prices falling below $300/mt CFR and iron ore prices softening over the past seven days, expectations have increased among buyers in the Middle Eastern and North African markets for reductions in Turkish rebar export offers.
Last week, ex-Turkey deals to the UAE have been heard for a total of 30,000-40,000 mt rebar in the range of $500-505/mt CFR, while in the current week Turkish producers' offers to the export markets are at $495/mt CFR. Both prices are on theoretical weight basis.
Weak demand and softening raw material prices have prevented Turkish rebar producers from maintaining a strong stance on their export offers. On the other hand, the current market situation is unlikely to change before the New Year. Several Turkish producers have preferred to cut their production capacity utilization rates to get through the current negative conditions and market sources believe the producers may eventually even be obliged to halt their production activities.