The price increase trend seen in the Turkish domestic
rebar market last week has also continued this week. 8-12 mm
rebar prices in the Turkish domestic market were this week at TRY 860-900/mt including VAT ($516-540/mt+18% VAT). However, it is possible to find a TRY 10 discount in the Marmara region and a TRY 15 discount in Izmir. Furthermore, it seems that the
rebar prices have increased $20/mt with the appreciation of the TRY against the US Dollar. These prices are relatively higher than the export prices. Therefore, if there is no increase in the US Dollar after the holiday period, the producers may conclude a downward adjustment in TRY prices. Last week, traders in the domestic market concluded purchases with a view to filling up their stocks. The reason behind the traders' purchases was the increase in the export prices of
scrap and
rebar, which is unusual to see in the heart of the winter season. In addition, the difficulty in the
billet market has also provided support for the traders. This week, the market was relatively calm due to the approaching holiday period. Turkish
rebar export offers for the
Middle East and
Europe were this week at $500/mt and above. There is not much activity in the export market since most of the Europeans were on their Christmas holidays. The
rebar offers for the Gulf region were at $515-520/mt CFR on theoretical weight basis for February shipments. The demand appears to be good in the
UAE. The producers in the
UAE that decreased their prices in early December, have increased them slightly. The price level of domestic rebars in the
UAE market was at AED 1,940/mt ($529/mt) ex-works, excluding VAT. Meanwhile, the price level of imported
rebar in the
UAE was at AED 1,920-1,950/mt ($523-531) on a theoretical weight basis for three-, four- and five-month deferred payment. The
UAE domestic
rebar prices have not indicated as rapid an increase as import prices have. Therefore, the traders in the domestic market are trying to build their stocks by making purchases from domestic producers. Domestic
rebar prices have also increased in the Israeli market. The Israeli buyers are ready to pay $500/mt FOB to the producers in
Turkey's southern region. The price level of
rebar in the local Saudi Arabian market is at around $545-555/mt ex-works on a theoretical weight basis, excluding VAT.
Construction activity is weak in some of the Saudi Arabian regions due to the Hadj season. These regions are expected to become active after the Hadj is over. Egyptian producers seem to very effective in this region since there is no five percent import tax for rebars from
Egypt. There is not much market movement in
Europe due to the Christmas holiday, with most players out of the market. The Spanish producers that increased their prices ahead of Christmas are thought likely to maintain their prices or even increase them slightly after the New Year. The Italian market has not reacted up to now. However, prices may increase in this region as well after the New Year. Furthermore, the expectation that the Ukrainian mills will increase their January prices may also support the Italian producers. Ukrainian producer Mittal Steel Kriviy Rih had decreased its prices in early December, with offers, especially for Algeria, at $460/mt FOB Black Sea. Towards the end of the month, the mill's offers were at $450/mt FOB Black Sea for late January / early February. Ukrainian producers have prospered especially in North
Africa due to the increase in the Euro / US Dollar exchange rate and the decrease in prices. However, due to the
rebar price increases expected to be concluded in
Europe after the holiday, and due also to the
rebar price increases already seen in the
Middle East and to the general
billet price increases worldwide, Ukrainian producers may increase their
rebar prices in January. Approaching the New Year,
rebar has seen a good period in most of the Mediterranean and
Middle East regions. This situation is generally expected to continue. For the time being, no opposite trend has been observed. Furthermore, the agreement on price increases for
iron ore by the Chinese mills and the possibility that the Chinese government may eliminate the VAT tax rebate or decrease it may affect prices positively in
Middle East, Gulf and
Europe in the coming period.