Following several import scrap deals concluded in Turkey, Turkish steel producers’ rebar export offers to Egypt and to West and Central Africa have increased by $10/mt on the low end over the past week to $350-355/mt FOB. Market players state that this price range has been accepted by Egyptian buyers and some Turkish producers have made rebar sales to the country, maintaining their usual sales tonnages.
In October this year, Turkish steel producers exported only 20,000 mt of rebar to the UAE, their most important rebar market. Even though no price offers from Turkey to the UAE market have been heard so far in November, it is heard that some Turkish producers will go to Dubai next week in order to conclude sales, with their rebar offers at $335-340/mt CFR on theoretical weight basis. However, it has become difficult for Turkish producers to conclude deals in the UAE, since major local producer Emirates Steel Industries (ESI) announced decreases in its domestic prices for November and December production.
Meanwhile, Turkish rebar offers to the US have remained stable over the past week at $350-360 CFR FO in US Gulf ports. Turkish steel producers, who were flexible about agreeing to give discounts during previous weeks, have insisted on keeping their prices to the US unchanged this week, after concluding import scrap deals at increased price levels. However, this price range has not been accepted by US-based buyers yet.
At present, Turkish steel producers are still having difficulties in concluding rebar sales to some regions in the Middle East amid ongoing conflicts. However, the producers have continued to sell small rebar tonnages to Syria and Iraq at $370-380/mt FOB.
Whereas Turkish steel producers have seen a recovery of rebar demand in their domestic market, especially in the Marmara region, following November 1 election, but they have failed to see a similar improvement in their export markets yet.