According to market sources, Turkish exporters' rebar offers to the export markets have increased by $10/mt to the price range of $510-520/mt FOB against the backdrop of rising import scrap prices. The exporters state that demand is good, especially in the US market, with ex-Turkey rebar deals to the US being concluded in the range of $520/mt CFR over the past week. Meanwhile, Turkish rebar exporters also state that they have the opportunity to offer at higher prices and test the market because they have already completed their sales for January shipments and have started to accept orders for shipments in February, and so there is less pressure on them to conclude new sales.
Turkish exporters are keeping a close watch to see whether China will cancel or continue its 13 percent export tax rebate. If the export rebate is cancelled, then the Turkish exporters will gain a significant advantage in foreign markets, while Chinese offers will lose their appeal. Accordingly, Turkish market players are waiting to hear China's decision on the tax rebate before deciding their new prices.
On the other hand, there has been an important development in the UAE market that interests Turkish producers closely. UAE steel producer Emirates Steel Industries (ESI) has reduced its rebar prices by $35/mt as anticipated, making it unnecessary for UAE buyers to seek import offers. Currently, UAE importers are unlikely to show interest in ex-Turkey rebar offers in the range of $510-515/mt CFR. Meanwhile, Turkish exporters' sales to countries like Yemen, Iraq, Kuwait, Egypt and Israel have been continuing. Rebar offers from Turkey's Iskenderun region to the Iraqi market are now in the range of $510-525/mt ex-works.