Demand for Turkish rebar exports still weak

Demand for Turkish rebar in the export markets has remained at low levels this week, while Turkish rebar export prices have moved sideways week on week at $385-410/mt FOB. Although demand for Turkish rebar in the export markets is still weak, Turkish steel producers, whose production costs have increased following the rises seen in import scrap quotations, are unwilling to reduce their rebar export offers which were increased to $385-410/mt last week due to the upward trend seen in global billet prices under the influence of higher Chinese billet prices. Additionally, import billet prices in Turkey had already been considered to be not sufficiently attractive to maintain a cost advantage compared to import scrap. 
 
In the current week, it has been heard that Turkish rebar offers to the United Arab Emirates (UAE) have been at $390-395/mt CFR, while ex-Turkey rebar offers to the US have been at $420/mt CFR, both on theoretical weight basis. Buyers in Turkish rebar exporters' target markets are keeping a close eye on both raw material and semi-finished steel prices in the global market before restarting their finished steel purchases and so they are in no rush to conclude new deals for Turkish rebar.