The price levels in the local Turkish market were in a range of TRY 1,450-1,500/mt early this week. However, the market started to climb rapidly on Thursday following the deals concluded on Tuesday and the one-day national holiday on Wednesday. The minimum price level observed in the post-holiday period has been TRY 1,500/mt. It is expected the market will shortly climb to TRY 1,600/mt.
On the Turkish export market side, Turkish mills were offering rebars in the early part of this week for export to destinations other than the US and Persian Gulf markets at $1,000-1,040/mt FOB on actual weight basis for late June and early July shipments. However, the producers' export price levels continued to increase as of Tuesday, following some sales concluded to the UAE on the day in question. The deals, concluded at the price level of $1,070/mt CFR on a theoretical weight basis at the beginning of the current week, have increased further towards the end of the week. Moreover, it is heard that, as of yesterday, Thursday, a cargo which does not include 8 mm rebars was sold to the UAE at the price level $1,095/mt CFR. The offers to the UAE are in a price range of $1,100/mt CFR for July shipment, while it is heard that there are offers to destinations other than the US and Persian Gulf markets at up to $1,080/mt FOB on actual weight basis.
The producer in the UAE on Wednesday announced its price at the level of AED 4,250/mt ($1,157/mt) ex-works on a theoretical weight basis for cash payment, excluding VAT. There is a small discount for buyers of large tonnages. Due to the high billet prices, the producer's announcement of the price level in question had been expected, and this expectation had caused the import market to be very active at the beginning of this week. On the other hand, the retail prices have not yet been set; however, the retail market price is expected to jump considerably higher than AED 4,200/mt ($1,144/mt) due to the latest import deals and the price level of the local producer.
The Middle East and Turkish rebar markets, which had been calm for three to four weeks, have increased rapidly this week. The sluggishness observed in the Southeast Asia and Far East markets (whose purchases from Turkey and the CIS had slowed down and even almost stopped in late March), combined with the fact that China has entered the export markets again, caused pressure on the overall rebar markets in the same period. It was heard in late March and early April that there were some offers and deals from China to the Persian Gulf in the price range of $930-950/mt CFR. On the other hand, due to the fact that the highest prices were observed in this period in the Middle East, the market players thought there would be a correction. However, as we mentioned in our last week's rebar analysis, in spite of poor domestic demand in Europe the European market has responded well to the upward movements in the Middle East, and the rising scrap and billet prices have supported the overall rebar markets. On the other hand, due to the fact that Chinese offers have increased to $1,000/mt CFR and above on a theoretical weight basis, the expectation of a correction has disappeared and this has given buyers encouragement for June and July purchases. Upward movements similar to that in the UAE market may be observed in Egypt, Kuwait and Saudi Arabia in the coming period.