Turkish rebar exports, which followed a relatively stable trend last week, experienced some softening this week. The latest rebar prices from Turkish producers to European countries are at around $610-620/mt FOB. The latest sales concluded from Turkey's southern region to Israel and Russia were at around $600/mt FOB. In addition, a cargo, excluding 8 mm rebar, was sold to Tunisia at $590/mt FOB. Although it would be incorrect to say that this sale to Tunisia reflects the current market situation, it enables customers to increase pressure for low prices.
This week's price level for imported rebar in the UAE market is at around AED 2,400/mt ($653/mt) delivered to site on a theoretical weight basis for 3- and 5-month deferred payment, excluding VAT. Although sales have been heard below this level, trading firms are not eager to make concessions from the level of AED 2,400/mt ($653/mt). According to reports, some offers were made at $610/mt CFR on theoretical weight basis from Turkey at the beginning of the week. Nevertheless, the majority of offers from Turkey are at $610-615/mt CFR on theoretical weight basis. Producers are trying to keep their offers at this price range. It seems that neither customers nor producers have much patience for waiting. Therefore, if the producers insist, bookings may be concluded at these levels. CARES-certificated rebar offers ex-China have remained almost unchanged compared to last week, ranging at $570-585/mt CFR on theoretical weight basis. However, the fact that the gap between Turkish and Chinese prices has narrowed seems to have created difficulty for Chinese competitiveness.
There were decreases recorded in southern Europe. Rebar prices have decreased around €35/mt in the local Portuguese market. The price level of 12 mm rebar in the local Portuguese market is at around €520/mt delivered to warehouse on actual weight basis, excluding VAT. Producers are applying a three percent discount to payments within ten days. The Iberian Peninsula stood out as the strongest market in southern Europe. However, the softening recorded in Portugal may affect the entire Iberian Peninsula negatively.
The Italian rebar market has also recorded a softening. Base prices have decreased to €330/mt. The price level of rebar in the local Italian market is at €515-525/mt delivered to warehouse in northern Italy. According to reports, Italian rebar offers for North Africa are at around €485/mt FOB this week. Customers prefer to put pressure on producers instead of making purchases at this level. Italian producers seem likely to act according to the prices that the Ukrainian producers will announce for North Africa. If the Ukrainian producers are going to reduce their June production prices for North Africa in line with some market players' expectations, Italian producers may bow to pressure from customers. Furthermore, the Bulgarian and Greek domestic markets, which are already experiencing difficulties due to Turkish offers, may also come under pressure from the low offers from Italy.
Northern Europe has been the best market in the old world thus far and continues to maintain its strength. Producers in the UK even announced the possibility of price increases. Markets such as Germany and Poland are in a good position due to the support of the strong Russian market. However, it is difficult to forecast how the negative trend in the Mediterranean will affect the north of Europe. The June prices to be announced by the Ukrainian producers for northern Europe are likely to play an important role. If the Ukrainian producers reduce their prices, countries such as Poland, Moldavia, Latvia and Germany may also be influenced.