Recent rebar situation in Black Sea, Middle East, Europe

The European, Middle Eastern and CIS markets experienced a flat momentum this week, while the UAE and Yemen markets were active. Turkish domestic market slowed down towards the end of last week. On the other hand, prices rallied this week with the appreciation of US Dollar against TRY. However, this situation has not lasted long and the demand returned to the flat momentum. Overall, trading firms in the domestic market are waiting for the activity in finance markets to come to an end. Domestic rebar price of 12 mm was at $545-560/mt delivered to warehouse, excluding VAT, this week. Rebar prices for export were at $550- 560/mt FOB Turkish ports. The demand from especially the Americas, UAE and Yemen for Turkish origin rebars was strong. SteelOrbis has heard that recent bookings of Turkey were at around $540-555/mt FOB last week and this week. Domestic prices in Italy have followed a flat trend for a long time and the demand seems not very strong. Average rebar prices are at Euro 420-430/mt delivered to warehouse, including 60 days deferred payment. Although Ukrainian mills have a tax disadvantage, they prevent Italians' exports to the Algerian market by asking more favorable prices than Italians. Therefore, there is no much demand for offer levels at Euro 410-415/mt FOB given to this area by Italian mills. Approaching holiday and the situation in the Algerian market seem to keep the prices stable. However, Mittal Steel Krivoy Rog, which increased its offers to $460/mt FOB and over to other areas except for Algeria for August shipments, may lead Italian producers to enter this market again for late July and August shipments. Furthermore, the customers in Spain and Portugal are showing less interest to Turkish origin rebar since Turkish rebar prices indicated a rapid rise and Euro/US Dollar exchange rate slightly slowed down. Currently, Italian producers' offers for early shipments and more favorable prices appear to have better terms. Moreover, Italian mills are also seeking the possibility of making sales to alternative markets such as Israel with the rapid rise in Turkish rebar prices. Average rebar price in local Spanish market was at $590-600/mt excluding VAT. The recent rebar cargo booking from Turkey was concluded at 554$/mt CFR Israel last week, for August shipment. The demand is strong in the domestic market and there is no adequate supply for rebar, so this situation supports the rebar prices and imports. This week, the Israeli market experienced a difference situation. It is heard that Italian mills are giving offers at $550/mt CFR Israel to be shipped in July. As is known, Turkish mills have a strong position in Israel for rebars. However, the rapid rise in prices and new offers given for September shipments lead some Israeli importers to focus on the Italian market. Whether Italian mills will enter the Israeli market or not, or in other words, whether Turkish mills will let them or not is going to be clear in the forthcoming days. There is not much demand in Spain and Portugal for the Turkish offers that are at $550-560/mt FOB. Price level of AENOR-certificated 20 mm thick rebars in the local Spanish market is at around Euro 535/mt delivered to warehouse. Domestic producers have increased the extras since May. Extras for small diameters indicated higher increases. Producers are planning to increase their prices further at the end of June, but stockpilers in the domestic market may not accept this situation due to the strong domestic market.