Rebar market in Europe kicks into a higher gear

This week the Turkish mills did not make any change to their prices. 8-12 mm rebar prices are in a range of TRY 1,030-1,095/mt ex-works, including 18 percent VAT. It would not be accurate to say the market is very active at the moment. It is possible to find prices up to TRY 1,000/mt from traders in some regions due to the fluctuation in the US Dollar exchange rate. The contractors have not started to make purchases yet. Therefore, traders have instead concluded deals among themselves. Traders are optimistic for April. Furthermore, the current high scrap prices help to ease any concerns the traders may have concerning their own high stock levels. On the export front, the offers of the Turkish mills for Europe were at $630-635/mt FOB at the beginning of the week, but $640/mt levels have been heard towards the end of the week. Currently, the best export market for Turkish mills seems to be Europe. The quantities of exports to Russia from Northern and Eastern Europe have created a gap in the market in these regions which is proving attractive to Turkish mills. In addition, the continuous rise in European prices also makes this market appealing to Turkish mills. Furthermore, the domestic rebar price in the UK is expected to increase to £370-380/mt, excluding VAT, in the coming period. If this expectation comes true, export tonnages to the UK may increase. Egypt has not been in the market since the introduction of its export tax. The Egyptian government has fixed domestic rebar prices at $534-540/mt, excluding VAT. Some rolling mills are not able to proceed with production since billet prices are higher than the fixed rebar prices. It has even been heard that some steelmakers that produce rebar from scrap are not running at full capacity since they have insufficient scrap stocks. According to reports, there is a lack of supply in Egypt. Although export prices are still better than the fixed domestic prices, the mills are not making offers to the international markets due to this lack of supply. Prices remained unchanged in the UAE during the past week. The imported rebar price level being charged by local stockists to contractors in the UAE market is at AED 2,400/mt delivered to site on a theoretical weight basis for 3- and 5-month deferred payment, excluding VAT. Offers from Turkey are at $630-635/mt CFR on a theoretical weight basis. Although the latest bookings concluded from China are at $535-550/mt CFR on a theoretical weight basis, the new offers of the trading firms are at $580/mt CFR. There has not been a significant change in Italy this week. The producers' prices for delivery to customers' premises were at €530/mt in the north of the country. After the increase in Ukrainian prices, the latest rebar export bookings concluded to Algeria increased to €500/mt FOB Italy. Ukrainian prices are generally expected to rise next month, therefore Italian export prices may increase further. Some Spanish mills have increased their prices by €30/mt in their local market since they are fully booked with orders. Base prices are now in the range of €380-400/mt. The price level of AENOR-certificated 12 mm rebar in the local Spanish market is at €600-620/mt delivered to warehouse, excluding VAT. As regards imports, Spain is observed to be importing less than Portugal, however it may accelerate in the coming period due to the increase in prices in March. Prices are continuing to increase, especially in Europe. The Persian Gulf appears to be slower than this market. Most market players forecast that the Russian market will see continued strength and that this situation will help Northern and Eastern Europe to maintain their strength in the coming period. Furthermore, the pick up in the US domestic market has led most international market players to concentrate on imports into this market. It is widely expected that if the US makes high tonnage purchases, prices may continue their strong trend.