Turkish mills are offering rebars for export to destinations other than the US and Persian Gulf markets at $950-1,000/mt FOB on actual weight basis for June shipments. In the last seven days, the Turkish producers selling to the UAE have been offering at price levels of $1,000/mt FOB, while Turkish producers selling to destinations other than the UAE are offering at $950/mt FOB. It is heard that the latter concluded some sales to Syria, Lebanon and North Africa at $950/mt FOB. Despite these deals, it would be difficult to say that the Turkish rebar export market is strong.
The price level of imported rebar in the UAE market this week has reached the range of AED 4,100-4,200/mt ($1,116-1,144/mt), delivered to site on a theoretical weight basis for three-to-four month deferred payment, excluding VAT. The UAE retail market has registered a sharp increase with the local UAE producer having raised its prices significantly in the past week. On the other hand, the sole Qatari producer increased its offers in the beginning of this month to QAR 3,900/mt ($1,072/mt) CFR on theoretical weight basis. Turkish producers have been continuing their offers in the price range of $1,030-1,040/mt CFR on a theoretical weight basis for June shipment. Buyers with large tonnages think that it is still too early to make purchases for June shipment and so they prefer to wait and see how the market will be shaped in the coming period.
The price level of medium size rebars in the local Italian market is at €615-625/mt ($965-981/mt) ex-works, with two to three months open account, excluding VAT. The base prices in the local Italian market are currently at €400-410/mt ($628-644/mt). Although the local Italian rebar market is quite slow, the Italian rebar producers have been maintaining their prices at high levels due to the very strong volume of orders for export and also due to the fact that no import threat from non-European countries exists at the current time. It is reported that the Italian producers would like to increase their prices by €20/mt ($31.4/mt) in the coming period.
On the other hand, the Italian producers are offering rebars to the export market at €620-630/mt ($973-989/mt) FOB for late May shipments. However, only a low level of demand has been received from the market. However, the producers are not insisting on sales as their order books are filled up to the end of May.
Some producers had increased their extras last month in the local Spanish rebar market. It had also been expected that the other producers would increase their extras in April. However, producers announced varied extra prices with the result that there was some confusion in Spain's rebar market at the end of March. With the beginning of April, the producers have reached agreement on common prices for extras. The Spanish producers are offering B500S grade 12 mm rebars to the local market at €640/mt ($1,005/mt) ex-works excluding VAT for 30-day deferred payment. The demand level is not great, just as in the other European countries.
Generally, the rebar markets in the Middle East and southern Europe entered April with price increases. The producers in Egypt, Qatar, Spain and the UAE have increased their prices. The Ukrainian producers have not announced their new prices yet; however, it is expected that ArcelorMittal Kriviy Rih will announce a price level of $930-940/mt FOB for June shipment.
Global rebar prices are on an upward trend in general. Most trading firms are not positive in their approach to the increase trend in question, and market players would mostly prefer to be involved in the sales side of the market. In addition to this, due to the fact that China has appeared in the export market again, trading firms are proceeding with caution. However, producers think that the rebar market will maintain its positive trend since their order books have been filled and raw material costs are increasing continuously.