The Turkish domestic rebar market prices continue to rise in line with the export market prices. Though consumption levels are not so high due to the winter season, traders are still purchasing thanks to their positive expectations. The rebar price level in the Turkish domestic market is at YTL 960-1,000/mt, including VAT ($695-725/mt, excluding VAT). The price level in question is above $700/mt excluding VAT in all regions in Turkey, except Izmir.
Turkish mills' offers for export in the past week have been at the level of $720-725/mt FOB Turkey on actual weight basis for late March shipments to destinations other than the US and Persian Gulf markets. The European and US markets are characterized by a lack of activity for the time being and so have not made any purchases yet. It seems that the most active markets are the Persian Gulf and the Middle East.
This week's price level for imported rebar in the UAE market has been at around AED 2,900-3,000/mt ($789-817/mt) delivered to site on a theoretical weight basis for 3- and 4-month deferred payment, excluding VAT. Most domestic stockists do not want to conclude any sales below the level of AED 3,000/mt ($817/mt). On the import side, the latest concluded deals for March shipments have been at the price level of $750/mt CFR on a theoretical weight basis, the latest offers are at the level of $770/mt CFR, also on a theoretical weight basis.
The producers in the Saudi Arabian domestic rebar market increased their price levels last week by SAR 200-250/mt ($53-67/mt). The price level of 8-12 mm rebar in Saudi Arabia's domestic market is at SAR 2,600-2,900/mt ($694-774/mt) delivered to warehouse on a theoretical weight basis, including five percent VAT. Due to the ongoing increases in billet and rebar prices in the region, it is expected that rebar prices in the Saudi Arabian domestic market will rise.
With the arrival of the new year, the Egyptian producers have started to give offers at price levels above $700/mt for late February/early March.
The European market has started to gain momentum after the Christmas-New Year holiday period. With the reopening of the markets on January 2, upward movements have started to be seen in the Europe, which had not responded much to the December increases in Turkey and the Middle East. The Spanish mills have increased their base prices from the pre-New Year's Day level of €260/mt (12 mm B500SD at €480/mt ex-works) to €280/mt (12 mm B500SD at €500/mt ex-works). The Spanish producers have, also, announced that they will increase their base prices to €300/mt (€520/mt ex-works) soon. On the other hand, the price of rebar in Portugal is at around €470-480/mt ($691-706/mt) delivered to warehouse. However, the producers' target level is €500/mt ($735/mt) delivered to warehouse.
The Italian domestic rebar market seems to have failed to shake off the holiday sluggishness. However, the Italian mills are offering rebars for export at up to the level of €460/mt ($676/mt) FOB on actual weight basis for February shipments. It is expected that further increases may be seen in the Italian domestic and export markets in the upcoming weeks.
Both the continuously rising raw material prices and the tightening of billet demand have been responsible for upward trends in several markets, principally in the Middle East. The rising European market - although it is closed for imports for now - and the possible strong tightening trend in the billet markets due to the increased export duty by Chinese government may help the Mediterranean and Middle East rebar markets to gain further momentum, thereby adding to the considerable strength these markets are already displaying.