Further declines seen in Turkish rebar export prices

Turkish rebar offers to the export markets have been following a downward trend during the past month, while Turkish steel producers' rebar export prices have declined by $30/mt week on week to $410-440/mt FOB. However, buyers in Turkish rebar exporters' target markets are still postponing their purchases as they expect to see a further downward movement in Turkish rebar export quotations.
 
Meanwhile, Turkish rebar offers to the United Arab Emirates (UAE) have declined by $20-25/mt over the past week to $420-425/mt CFR on theoretical weight basis. Although domestic transaction activities will decline in the UAE during Ramadan which will start on June 6, UAE-based buyers state that their rebar stocks are insufficient to meet their needs as they stopped their rebar purchases from Turkey in May. As a result, UAE-based buyers say they will continue their rebar purchases from Turkey during Ramadan. Meanwhile, buyers in the UAE are expected to continue to put pressure on Turkish steelmakers to reduce their rebar price levels as domestic rebar quotations in Turkey have declined significantly over the past month and they also want to see similar decreases in their rebar purchase prices from Turkey.
 
In the current week, Turkish rebar offers to the US have been in the range of $440-450/mt CFR, while buyers in the US are still postponing their rebar purchases from Turkey as their stocks are at high levels and since they believe that prices have not hit bottom yet.