The Mediterranean
rebar markets which had indicated a flat movement in early October started to slow down this week. Despite the decreases in the Russian domestic market, the
CIS still stands out as the strongest market.
Turkish domestic
rebar prices – especially in the Izmir area - have decreased on a TRY basis. The 12 mm
rebar price in Izmir fell to TRY 905-915/mt ($516-522/mt+VAT). Although the mills' list prices have held on to TRY 950/mt in the Marmara region, discounts have been heard of for big tonnages. The 12 mm
rebar price in
Turkey's Southern region was at TRY 915/mt ($519/mt+VAT). After some sales were concluded at TRY 905/mt in
Turkey's Sivas area at the start of the week, towards the end of the week sales were concluded at TRY 910/mt ($519/mt+VAT). In spite of the decreases recorded on a TRY basis, the appreciation of the TRY against the US Dollar has prevented prices from decreasing significantly on a US Dollar basis.
Turkish
rebar exports have decreased slightly to $510-520/mt FOB for December shipments. Turkish producers have not been in an aggressive mood for export sales for almost one month now. Those Turkish producers that concluded sales in early September to Eastern
Europe and the
Middle East at increased prices (especially in the
UAE), experienced stagnation in exports during mid-September due to the huge domestic prices increases. Turkish producers have not been complaining about this situation since domestically demand and prices were strong. However, with regression in domestic demand and prices, export offers are starting to record decreases as well. These decreases may continue, but only slightly until the
UAE and US enter the market for December shipments. If the
UAE and the US conclude huge tonnage purchases for December shipments, prices may become flat or even rally in late October / early November.
Demand and prices are in a downward trend in Eastern
Europe. Meanwhile, Spanish producers have reduced their base
rebar prices by Euro 20/mt in their domestic market. AENOR-certified 12 mm
rebar base prices fell to Euro 530/mt ex-works on a 60-day deferred payment basis. Imported
rebar price levels in the Spanish market are at Euro 460-485/mt free on truck. The market seemed to lose its steam in September and some market players are expecting prices to decline further. The situation in
Portugal is similar to that in
Spain. Prices in
Italy remained almost unchanged at Euro 445-450/mt ex-works. With Ukrainian
rebar producers focusing on the Russian market, the Italians had less competition in North
Africa. Despite the slowdown in Eastern
Europe, this situation may support prices in
Italy. Furthermore, the softening in the Euro/US Dollar exchange rate, which creates a bottleneck situation for
rebar imports to Southern
Europe, also has its advantages, especially for the Italian producers'
rebar exports to North
Africa.
Rebar prices in the Israeli market were at $540-550/mt ex-works at the beginning of the week. Demand is not strong in the domestic market which shows a downward trend. The
UAE market indicates a flat movement. Importers are not showing much interest in the Turkish offer levels of $520/mt on a theoretical weight basis. Buyers are planning for lower levels for December shipments after the month of Ramadan.
A directly contrasting market trend to that in the Mediterranean dominates in North
Africa and the
CIS. Meanwhile, despite the approaching winter season, the German market still seems strong.
Rebar ex-
Latvia has been booked in
Germany at around Euro 450/mt DAF on actual weight basis. Russian domestic market prices have started to slow down, but only slightly. However, these decreases have not affected the market as the prices are very high. Due to their domestic market situation, Russian producers are not taking into consideration Iranian offers of $510-520/mt CFR
Iran (Caspian Sea ports). Ukrainian mills - especially Mittal Steel Kriviy Rih – have focused on the Russian market. Reports state that Mittal Steel Kriviy Rih has raised its
rebar price to $500/mt FOB Black Sea. Some market players consider that these prices may constitute the peak point as the
construction season comes to an end.