Chinese rebar still present in Turkey's key export markets

According to market sources, Turkish exporters' rebar offers to the overseas markets have been nearly stable in the range of $505-515/mt FOB during the current week. Following China's cancellation of the 9-13 percent export tax rebate on boron-added steel products, Turkish rebar exporters have not yet seen the anticipated improvement in demand from their key export destinations yet, especially as the New Year holidays have only just come to an end and as ex-China rebar offers are still attractive enough to make buyers hesitate.
 
Meanwhile, Chinese steel producers have decided to add chrome to steel instead of boron in order to continue to avail of export tax rebates and so their rebar export offers have continued to remain on the low side. Chinese rebar offers to Yemen, which is one of the key export destinations for Turkey, are at $470/mt CFR, on actual weight basis, while rebar offers from Turkey are at $520-525/mt CFR, on theoretical weight basis. However, as chrome hardens steel, it is not the best option for rebar production and Yemeni buyers are viewing the Chinese chrome-added rebar with some suspicion. Yemeni buyers are hesitating to conclude deals due to quality concerns about the rebar in question and are waiting for approval from their government.
 
On the other hand, two separate deals have been concluded for a total of 20,000 mt of rebar from Turkey to the UAE - another important market for Turkish rebar producers - in the price range of $500-502/mt CFR on theoretical weight basis, while offers from Turkey's Iskenderun region to Iraq have been at $500-505/mt ex-works during this week. However, demand in Iraq for Turkish rebar is reported to be weak amid difficult winter conditions.