According to market sources, Turkish
rebar export offers have risen by a slight margin of $5/mt during the past week to $445-455/mt FOB. Even though no real improvement has been recorded in foreign demand, sentiment in the market has improved especially due to the increase in import scrap offers in
Turkey and so Turkish producers have gained the courage to increase their prices slightly.
During the week, transaction activity to the export markets has been sluggish, while market sources report Turkish
rebar sales of small tonnages at the prices mentioned above to the Middle East and North Africa. Meanwhile, it is heard that a Turkish producer has concluded approximately 6,000-7,000 mt of
rebar to Brazil at $455/mt FOB on actual weight basis, after its sales concluded last week to Yemen in the range of $465-470/mt CFR on theoretical weight basis. On the other hand,
UAE-based steelmaker Emirates Steel Industries (ESI) has reduced its March production rebar prices in a bid to stem the flow of imports. In addition, Turkish
rebar offers to the US market are in the range of $450-460/mt CFR on theoretical weight basis. Turkish exporters continue to search for new markets due to issues such as unfavorable political developments in a number of existing export destinations, currency issues, and weak demand due to seasonal reasons. In this context, one Turkish producer has been concluding regular sales of small volumes to Tanzania and Madagascar over the past couple of months.
Turkish rebar offers continue to be heard to this region.
Chinese market players have still not completely returned to the market after the Chinese New Year (February 18-24), and so pressure from cheaper Chinese offers has not yet been felt in the international market. However, Chinese players are expected to return to the market in the coming week, while their likely pricing strategy is a subject of interest. Turkish producer's efforts to increase their prices on the back of rising scrap prices and in line with improving seasonal conditions have raised concerns among buyers and so they are expected to conclude some transactions in the short term before any possible price increase. However, in the longer term, if steel demand fails to improve and if low-priced Chinese offers continue to put pressure on international prices, Turkish producers' efforts to raise their prices will probably meet with difficulties.