Higher Turkish rebar export prices fail to gain acceptance

Demand for Turkish rebar in the export markets have remained at low levels this week, while Turkish rebar export prices have increased by $10/mt week on week to $385-410/mt FOB following the rises recorded in import scrap quotations in Turkey. However, Turkish exporters' new rebar offer prices have failed to gain acceptance from foreign buyers. It has been observed that buyers' firm bids are currently at $370-375/mt FOB.
 
In the current week, price inquiries for Turkish rebar have continued to be heard from the United Arab Emirates (UAE) and Egypt, while demand for ex-Turkey rebar in the US has been very weak in the same period due to the high rebar inventory levels in the country.
 
Market sources state that foreign buyers are exerting downward pressure on Turkish rebar export offers and are unwilling to conclude deals above price levels of $370-375/mt FOB. As a result, market sources believe that Turkish steel mills may reduce their rebar export prices in the coming period in accordance with buyers' firm bids. However, Turkish steel producers are reluctant to reduce their rebar export prices as their production costs have increased due to the rises seen in import scrap quotations in Turkey.