After the statement of European Central Bank (ECB) president Mario Draghi today, July 26 saying that the ECB would "do whatever it takes to preserve the euro", the euro/dollar exchange rate climbed suddenly from 1.21 to 1.23. Since the stronger euro means less attractive European long steel offers, it is thought that ex-
Turkey and ex-
CIS long steel offers may gain some more ground in the export markets.
Although it is mentioned in economic circles that the current exchange rate cannot be sustained in the medium term, European
rebar export offers at €490/mt FOB have now increased to about $604/mt FOB on dollar basis as of today. Given that Turkish
rebar export offers are at $600-615/mt FOB and ex-
CIS rebar offers are at $590-600/mt FOB, higher ex-
Europe rebar offers on dollar basis may reduce the price pressure on Turkish and
CIS mills. Besides, if the current exchange rate can be maintained in the coming period, the anticipated downward adjustment of
rebar prices in the coming week may not materialize.