Turkish mills are offering rebars for export at $580/mt FOB for end of October shipments to destinations other than the US and Persian Gulf markets. The Turkish producers' export markets are not very good. There have not been many deals concluded to Europe because the European market, contrary to expectations, is not sufficiently strong in the post-holiday period. On the other hand, the upward trend of the €/USD exchange rate may help Turkish producers to complete some deals.
The domestic rebar market in the Iberian Peninsula has been unable to meet producers' expectations. Although traders have very low stock levels, import material still remains at the ports. This situation has been affecting the market considerably. Prices are still at the same levels. The producers' targeted base prices were at €290-295/mt ($402-409/mt) for the post-holiday period. There were sales at €490-495/mt ($680-687/mt) in recent weeks since the producers have been trying to keep the price level of 12 mm at €500-505/mt ($693-700/mt) delivered to warehouse, excluding VAT. As for the export market, Spanish offers to Africa have been heard at €430/mt ($596/mt).
The situation in Portugal is even worse than Spain. The producers' stock levels are high and the ports are full of import material. The price level of medium size rebar in the Portuguese domestic market is at €440-450/mt ($610-624/mt) delivered to warehouse, excluding VAT.
It cannot be said that the northern European rebar market is doing very well at the moment. The price level of rebar in the local German market is at €440-450/mt ($610-624/mt) delivered to warehouse, excluding VAT. Furthermore, the situation as regards prices and demand is not any better in England and Poland.
Contrary to expectations, no rebound has been seen in the domestic European market. Although some upward movements were seen in Italy, Romania and Poland, the situation is not positive in most of Europe. Therefore, billet offers from German and Spanish producers to the Middle East are being heard. Besides, another issue which creates difficulty for producers in Europe is the upward trend of the €/USD exchange rate, as it may help producers from export countries such as Turkey or Egypt to boost their sales to Europe.