Following the change of trend in import scrap prices which had started to move up as of the start of February, Turkish steel mills have increased their rebar export quotations by $12/mt on the lower end week on week to $410-455/mt FOB on actual weight basis.
Price inquiries for Turkish billet and rebar continue in the Far East where Turkish steel producers had gained a price advantage after the declines recorded in scrap prices in January. It is reported that after the Chinese New Year holiday (Jan. 27-Feb. 3) Chinese suppliers have returned to the market with new rebar offers this week, but they have failed to maintain a competitive price policy for now. On the other hand, Turkish steel producers are expected to raise their rebar offers to the region due to their increased production costs amid higher import scrap quotations. Market sources state that no new Turkish rebar deal has been heard in the Far East region after the previous transactions concluded at the beginning of February in the range of $420-425/mt CFR on theoretical weight basis.
Despite the increases seen in global scrap prices, steel producers in the United Arab Emirates (UAE) have reduced their domestic rebar prices for February output. However, Turkish steel mills have increased their rebar offers to the UAE over the past week from $410/mt CFR to $420/mt CFR, both on theoretical weight basis, amid the rises seen in their production costs following their import scrap purchases made since the beginning of February. Market sources state that, with domestic steel producers' rebar prices falling for February output, UAE-based buyers consider the new price range for Turkish rebar to be on the high side and so they have not concluded any new deals for Turkish rebar.
Demand for Turkish rebar in the US is at low levels ahead of the preliminary decision for the antidumping (AD) duty and countervailing duty (CVD) investigations against Turkish rebar which will be announced at the end of February. Due to the weakness of demand, Turkish steelmakers have kept their rebar offers to the US stable week on week at $460-465/mt CFR on theoretical weight basis despite higher production costs. On the other hand, it is reported that both Turkish steel producers and US-based buyers are waiting for the preliminary decisions in the trade cases before deciding on their new strategy.
Likewise, demand for Turkish rebar in Egypt is at low levels due to the uncertainties regarding the details of the AD and CVD investigations opened for Turkish rebar imports. Market sources state that Turkish producers have not decided a new price policy for Egypt since there is no demand for Turkish rebar in the country.