Demand for Turkish rebar exports in the international markets has remained at low levels over the past week. While the weakness of demand is a result of buyers’ expectations that scrap quotations will fall in the short term, Turkish rebar producers have tried to keep their official price levels stable at $490-505/mt FOB in the past week since they have gained no relief in terms of their production costs, with no significant fall yet recorded in scrap quotations. While this price range has failed to gain acceptance from international buyers, Turkish rebar export offers as low as $480/mt FOB were heard depending on tonnages and region from sellers who sought to gain a share of the very limited demand in the global market. However, SteelOrbis has been informed that his price level has also failed to gain acceptance from buyers. Additionally, Turkish mills have gained no support from their domestic market for their export prices given the slack domestic demand caused by higher prices amid the weakening of the lira, and also caused by the local election to be held on March 31.
On the other hand, in regions such as Africa, Israel and Yemen where Turkish mills usually conclude sales, demand for Turkish rebar has weakened as buyers in these regions are generally waiting for a decline in prices. Although billet demand in the international markets is slightly better than rebar demand, Turkish producers have lost their competitiveness also in billet exports after CIS-based billet suppliers reduced their billet export offers below Turkish mills’ prices.