This week an increase has been observed in the frequency of Turkish rebar producers' export offers to the UAE. While the offers in question have been reported at $485-500/mt CFR Dubai, it is known that the price level of $485/mt cannot be given by all producers. Also, it is difficult for producers to give offers below the abovementioned price range due to the current scrap prices. However, buyers are seeking to bring down the import prices as the end-users in their own local markets do not accept current prices.
This week in the local Turkish rebar market, price decreases of TRY 35/mt including VAT ($20/mt excluding VAT) have been experienced in some regions. Finished steel product prices seem to have softened due to decreasing raw material prices in the local market, in addition to the weak end-user demand.
In Europe, the downtrend in export offers has attracted attention. While export offers from southern Europe have this week been at €340-345/mt FOB, offers at lower levels have also been mentioned. These lower prices have in particular been heard in markets where there is competition with Turkish offers. Meanwhile, although producers in southern Europe have not decreased their prices officially, low price ranges are being heard in deals. In Italy, it is observed that not only have export rebar prices registered a significant downtrend, but that domestic prices have declined as well. Along with all these developments, demand is still weak in general. Seeing that prices are on a downtrend and that there is some possibility of further decrease, end-users are in general delaying their purchase activity.
Rebar prices in the global markets have this week registered a downtrend in general. In the upcoming weeks, it will be seen how the possible continuation of the decline of raw material prices will affect the finished steel markets.