Demand for Turkish rebar exports improves slightly

Demand for Turkish rebar in the export markets has increased slightly in the current week, though it is still at low levels, while Turkish rebar offers to the export markets have remained unchanged week on week at $350-380/mt FOB.
 
Domestic rebar prices of producers and traders in the United Arab Emirates (UAE) - one of the most important target markets for Turkish rebar exporters - have remained stable this week as demand remains at medium levels, while Turkish rebar offers to the country have also moved sideways at $360-365/mt CFR, on theoretical weight basis. On the other hand, UAE-based buyers, whose rebar inventories are on the high side, have continued to exert downward pressure on Turkish rebar export offers during the past week. However, Turkish steelmakers have been unwilling to reduce their rebar offers to the UAE since last week.
 
In Egypt - another target market for Turkish rebar exporters - domestic steelmakers have been forced to increase their rebar prices due to the hike from eight percent to 13 percent recorded in VAT in the middle of September. Additionally, monitoring of rebar imports arriving in Egypt has been tightened with imports only approved if they are sold directly by foreign producers or by their officially-authorized distributors. Accordingly, Egyptian buyers are showing more interest in purchasing rebar from such sources. Under these circumstances, it is observed that inquiries for Turkish rebar have increased in Egypt as buyers can directly purchase import rebar from Turkish producers at more attractive prices compared to domestic rebar quotations. The latest ex-Turkey rebar sale was concluded last week in Egypt at $390/mt CFR on actual weight basis.
 
Meanwhile, US-based buyers, who want to increase their inventories before the announcement of provisional antidumping (AD) duty rates for rebar imports from Japan, Taiwan and Turkey, have stepped up their price inquiries for Turkish rebar, while it is observed that Turkish rebar quotations moved up in the deals concluded last week. In the current week, no new rebar sale has been heard from Turkey to the US, while deals concluded last week for Turkish rebar were at $385/mt CFR.