According to market sources, ex-Turkey rebar offers to the export markets have remained at $560-570/mt FOB on actual weight basis over the past week.
The sudden political crisis in Iraq is a sign that negative sentiment in the export markets will continue to grow. Market sources state that demand for ex-Turkey rebar has been weak in Iraq for the last two weeks and, in the light of the latest developments, it appears very difficult for demand to register an improvement.
Market sources report that Turkish rebar prices have remained unchanged because scrap prices have not weakened significantly, but Turkish rebar prices may decrease further if scrap prices do weaken by a significant margin.
On the other hand, it is getting harder for Turkish producers to maintain a strong stance on their prices the approach of Ramadan and the ongoing turmoil in Middle Eastern countries.
In the coming days, if import scrap prices do not fall significantly, Turkish producers are expected to soften their prices gradually and try to keep them in the range of $555-565/mt FOB for July and August shipments.