SteelOrbis is informed that Turkish mills are offering rebars for export at $725-740/mt FOB on actual weight basis for April shipments to destinations other than the US and Persian Gulf markets. Turkish producers have started to receive some offers from Europe due to the price increases in the European local markets. The outlook for the Turkish producers' sales to Europe may be shaped clearly in the upcoming weeks. On the other hand, the sharp upward price trend in the US local market has given the Turkish producers cause to be optimistic.
This week, the price level of imported rebar in the UAE market has been at around AED 3,000-3,050/mt ($816-830/mt), delivered to site on a theoretical weight basis for 3- and 4-month deferred payment, excluding VAT. Due to the rainy weather, not many deliveries and sales in the UAE local market materialized this week. For this reason, retail prices did not change that much compared to the previous week in spite of the rising import prices. However, it is expected that the prices will rise again with the return of good weather conditions. On the other hand, it has been heard that Turkish producers' offers for March shipments have been concluded up to the level of $780/mt CFR, on a theoretical weight basis, in the UAE import rebar market. Also, it is heard that some Chinese offers are at the level of $780/mt CFR on a theoretical weight basis. However, trading firms have not been favoring Chinese rebars.
At the beginning of this week, the price level of 8-12 mm rebar in Saudi Arabia's domestic market increased by SAR 300/mt ($80/mt) to SAR 2,850-3,175/mt ($760-847/mt) ex-works on theoretical weight basis, including five percent VAT. The price increase in question had been expected due to the continuously rising raw material and billet prices. On the other hand, it is expected that the export prices to Qatar, Kuwait and the UAE will gain momentum due to the increasing prices in the local Saudi Arabian rebar market.
It is heard that Ukrainian producers' offers have increased to $720-725/mt FOB this week, up from the previous week's price level of $700-705/mt FOB. However, their official price levels are expected to be announced next week.
Rebar prices continue to rise in Turkey and in the Middle East region. However, market players are questioning how long the activity in the region will continue? The activity levels in the European and US markets, which have recently been similar to those in the above regions, seem likely to block any expectations of a downward trend.