Turkish rebar export volumes have declined further during the past week as buyers in the Middle East and North Africa (MENA) region - Turkey's most important target market for rebar exports - have only purchased Turkish rebar in line with their immediate needs since they do not want to carry inventory costs during the end-of-Ramadan holiday (July 4-7). Meanwhile, demand for Turkish rebar in the global markets is currently at low levels, but is expected to increase slightly after the end-of-Ramadan holiday, according to market sources. However, the anticipated increase in Turkish rebar export volumes will likely be limited as the outlook for the global long steel market remains negative, while market sources are expecting the downward pressure on Turkish rebar quotations to continue after the holiday. Meanwhile, Turkish rebar offers to the export markets have declined by $10/mt on the upper end during the past week to $390-415/mt FOB.
At the beginning of the current week, SteelOrbis was informed that buyers in the United Arab Emirates (UAE) concluded deals for a total of 22,000 mt of Turkish rebar at $400/mt CFR on theoretical weight basis. Ahead of the end-of-Ramadan holiday, purchases of locally produced and import rebar in the UAE market have continued to slow down with each passing day, while buyers in the UAE are expected to continue their rebar purchases only in line with their needs. Although no deal for Turkish rebar had been heard in the UAE in May, since the beginning of June UAE-based buyers have concluded transactions for a total of 85,000 mt of Turkish rebar. Market sources are anticipating a reduction in price quotations from Emirates Steel Industries' (ESI) in line with the example set by other steel producers Conares and Qatar Steel which revised their rebar prices downwards for July and August output this week. ESI is expected to announce its new prices after the end-of-Ramadan holiday. If ESI does indeed reduce its rebar quotations, buyers in the UAE are expected to push for lower prices for Turkish rebar exports.
On the other hand, SteelOrbis has been informed that Turkish rebar offers to the US are currently at $415/mt CFR on theoretical weight basis, while price levels at $430/mt for Turkish rebar are no longer present in the US. Market sources state that buyers in the US are still putting pressure on Turkish rebar export quotations, seeking lower offers before restarting their purchases of Turkish rebar.
Additionally, two Turkish rebar deals have been concluded in Egypt this week at $390-395/mt FOB on actual weight basis.