This week, Turkish producers increased their rebar price level to $750/mt FOB in their export offers to Europe for April shipments following the sale concluded earlier in the past week of a number of cargoes of rebar to the USA. On the other hand, some producers, who do not sell to the USA and the UAE, have instead been offering rebars to Middle Eastern countries such as Syria, Lebanon and Israel at slightly below the price level in question. Turkish producers have made some sales to the USA, Latin America, Singapore and the UAE markets. The latest sales in question are at a price level equivalent to $750-760/mt FOB on actual weight basis. However, some producers have already started to target levels of above $760/mt FOB.
In the Turkish local rebar market, mills, especially those in Istanbul and Izmir, are setting their prices at the level of $750/mt + VAT ex-works. As an exception, a mill in the Marmara region has set its price at the level of $750/mt excluding VAT (TRY 1,040/mt) after concluding a certain amount of sales at the price level of $725/mt excluding VAT (TRY1,010/mt) on Monday this week. Some traders are uneasy since real demand is not strong due to the bad weather conditions.
At the start of the week the price level of imported rebar in the UAE market was at AED 3,100/mt ($845/mt) delivered to site on a theoretical weight basis for 3- and 4-month deferred payment, excluding VAT. It seems that the improved weather conditions have affected the UAE domestic rebar market in a positive way. However, construction companies are not comfortable due to the continuously rising prices. On the import side, buyers have not been so active for around ten days. However, importers entered the market again as of the beginning of this week. Thus, some deals were heard to have been booked from Turkey at the price level of $780/mt CFR on a theoretical weight basis. However, it is being reported that Turkish producers are targeting the price level of $800/mt CFR.
On the other hand, prices in the overall European rebar market continue to trend up.
Spanish producers increased prices in their offers slightly in the past week. Despite the fact that the producers in the local Spanish rebar market increased base prices to €360-370/mt ($536-550/mt ex-works for 12 mm B500S), the transaction price of the product is €20/mt ($30/mt) lower than the price level in question. It would be difficult to describe end-user demand as being very strong at the moment. In spite of this, the producers' price increases have been accepted in the market since distributors' stocks are at low levels. In addition, the Spanish producers are planning to increase their extras at the end of February. Meanwhile, Spanish producers are not very active in the export market thanks to the strong situation in the Spanish local rebar market.
The Italian mills are currently offering rebars for the export market to North Africa at the price level of €515/mt ($766/mt) FOB, on actual weight basis. On the local market side, the price level of €510-530/mt ($758-788/mt) ex-works excluding VAT is observed. In spite of this, given the extras announced as of today, February 1, the new prices do not seem to be in accord with the market situation.
Bulgarian rebar mills have been offering rebar at the price range of €485-490/mt ($721-729/mt) FOB in recent weeks. Some deals have even been heard at the price range in question. However, according to the general expectation, the Bulgarian mills may increase their prices above the price level of €500/mt ($743/mt) FOB.
The overall European rebar prices, which started to trend up at the start of January, continue to rise without deceleration. Despite the fact that the real demand level is not so strong, the producers are facing difficulty in terms of increasing their prices since distributors' stocks are at low levels. After a certain sluggish period, the rebar market in the Middle East and Persian Gulf has started to gain momentum again this week. There may be some upward movements in the import and local markets of some Middle Eastern countries, such as Saudi Arabia, Syria and Lebanon, as of February.