Due to the continuous increase in scrap prices, this week Turkish producers offered rebars for export at $570/mt FOB on actual weight basis for December shipments to destinations other than the US and Persian Gulf markets. It would be difficult to say that there is decent demand for these price levels. Producers say that if the upward price trend in scrap is prolonged, they will have no choice but to increase prices or slow down production. On the other hand, buyers are not expecting a decrease in prices to take place in the near future due to the strong raw material prices. In spite of this, buyers think that the market is not able to accept price increases for the moment.
This week, the price level of imported rebar in the UAE market was at AED 2,280-2,300/mt ($620-626/mt) delivered to site on a theoretical weight basis for 3- and 5-month deferred payment, excluding VAT. Retail prices have remained unchanged for some time due to the stable import prices. The latest deals concluded in the UAE import rebar market from Turkey were at the level of $590-595/mt CFR, on a theoretical weight basis. Due to the rising freight costs and high raw material prices, some Turkish producers are even offering over $600/mt, on a theoretical weight basis.
Although Italian rebar producers were trying to increase their base prices to the level of €225-230/mt and above (€420-425/mt ex-works), it was still possible to see a base price level of €210 (€405 ex-works) in the middle of the week. With regard to the export market, offers were at the level of €400-410/mt ($578-593/mt) FOB. The Italian rebar producers are complaining of tightening margins resulting from high raw material prices. Some production slowdowns at electric arc furnaces (EAFs) and some ad hoc stops at rolling mills were heard in the past week. The market players in the Italy are not expecting any further decrease in prices due to the current conditions.
The rebar prices in the domestic Portuguese market were around €430/mt ($621/mt) delivered to warehouse on actual weight basis with 60-day open account, excluding VAT. The prices have been stable recently, while the domestic Portuguese rebar market is still quite sluggish. Market players are not expecting a price decrease since there is no import threat, thanks to the high raw material prices and stable domestic market prices.
No significant awakening has been seen in the Middle East and Mediterranean rebar markets. However, most market players are not expecting any further decrease in the longs market since the raw material prices are at high levels. Thus, there are even some market players who, being of the view that the market has already bottomed out, are expecting a rebound in the not too distant future.