Ex-Turkey rebar offers soften further

Turkish steelmakers' rebar export offers, which were standing at $600-610/mt FOB last week, have softened by $5/mt to $595-605/mt FOB, on actual weight basis. Market sources indicate that Turkish mills' offers at around $600/mt FOB have become more common and prices on the low end could soften further by $5/mt for high volume orders.
 
The softening in scrap and iron ore quotations last week and ongoing low demand have caused price erosion in the finished steel market. Market players are not sure when the downward trend will end, but all the indicators suggest the second half of February.
 
On the other hand, after Chinese market players return to the market on February 15 from their Spring Festival holidays, import iron ore prices in China will likely move up on the back of improved demand and this upward price trend will likely be reflected in higher ex-China finished steel transaction prices for March shipment.