Turkish mills are offering rebars to Europe at $620-630/mt FOB on actual weight basis for late June shipments. Some customers in Europe are making purchases due to the strong €/$ exchange rate and the robust market movement evident across Europe, especially in northern Europe; however, other customers are hesitant and prefer instead to wait and see. Offers for some European countries and to West African countries that do not require homologation certificates are at around $600-610/mt FOB.
The price level of imported rebar in the UAE market is at around AED 2,400-2,430/mt ($653-662/mt) delivered to site on a theoretical weight basis for 3- and 5-month deferred payment, excluding VAT. Domestic rebar prices are under pressure due to the softening of imported rebar offers. Offers from Turkey are at $620-630/mt CFR level on theoretical weight basis. Tonnage from China is around 50,000 tons on a monthly basis. The offers from China are still at $560-570/mt CFR on theoretical weight basis. The effect of the Chinese VAT rebate cancellation, which affected other long products such as wire rod and beam, has not been fully seen in the rebar market yet.
Export prices for rebar ex-Egypt are at $620-625/mt FOB on actual weight basis for June shipments. Egyptian mills have dropped their export rebar prices slightly following the price corrections seen in scrap and billet. However, even with these reduced prices they are having difficulties in competing with other countries in their exports to Eastern Europe and Russia. Contrary to the trend in scrap and billet prices, rebar prices in the domestic Egyptian market have increased by EGP 150/mt (approx. $26/mt) to EGP 3,550/mt (approx. $625/mt). If the decrease in billet prices continues and their rivals the Turkish producers maintain the decrease trend in their prices, it seems likely that the Egyptian producers will adjust their prices accordingly.
Prices remained unchanged in Spain this week after the rise recorded last week. This week, the price level of AENOR-certificated B500S 12 mm rebar in the local Spanish market is at €620-630/mt delivered to warehouse, excluding VAT. Domestic demand is reportedly strong. Both the €/$ exchange rate and domestic prices are contributing to the exports from Egypt and Turkey. However, some customers prefer to wait and see due to the uncertainty in these regions.
Italian prices are stable this week following the decrease experienced last week. Base prices are at €350-360/mt. Moreover, it was possible to find base prices at €340/mt. Prices for delivery to customers' premises are at €530-550/mt in northern Italy. The decreases recorded in Turkish rebar prices and Ukrainian billet prices seem to have had an effect on Italian prices. Furthermore, the continuous rise in the €/$ exchange rate is causing difficulty for Italian producers in North Africa. It seems hard for Italian producers with offers at €510/mt FOB to compete with Ukrainian producers in North Africa. In addition, possible price decreases in Eastern European countries such as Bulgaria and Greece, due to the pressure coming from Turkey, may add to the worries of the Italian producers. On the other hand, the fact that the Turkish producers' expectations for May are positive due to the movement in scrap prices and the possibility that Ukrainian producers may continue to increase their prices due to the strong Russian domestic market may help the markets in southern Europe - especially in Italy - and also in Eastern European countries to maintain their strong movement.