While prices of import scrap in Turkey have softened over the past week, Turkish mills’ rebar export sales have increased somewhat, with rebar deals being concluded to various markets including the US, Canada, Singapore, the UK and Germany at $520-533/mt FOB, on actual weight basis, depending on tonnage and shipment.
In the US market, where demand for Turkish rebar declined significantly following the announcement of the Section 232 investigation in late April this year, two Turkish producers have concluded rebar deals this week at $580-585/mt CFR, including antidumping duties, on theoretical weight basis. Meanwhile, market sources state that the outcome of the Section 232 investigation, which will be announced in January, is still unpredictable.
Meanwhile, in addition to the Turkish producers who concluded rebar sales to the US, another Turkish producer has concluded a deal for a large volume of rebar to the Far East at $520/mt FOB, on actual weight basis. Besides the ex-Turkey rebar sales to the UK and Germany heard this week, a steel mill in Turkey’s Iskenderun region is heard to have concluded a rebar deal to Yemen at $525-530/mt FOB, on actual weight basis.
As a result of the rebar export sales mentioned above, positive sentiment has prevailed in the Turkish finished steel market. However, in Egypt and the United Arab Emirates (UAE), two of Turkish producers’ former main rebar export markets where no deals have been concluded for a long time, demand for Turkish rebar in these countries is not expected to recover in the short term, due to the 10-19 percent temporary antidumping margin imposed on Turkish rebar imports in Egypt and since rebar supplies in the UAE domestic market are at desirable levels.