Slack demand for Turkish rebar exports

Due to the Turkish lira losing strength against the US dollar and the euro amid political tensions between Turkey and Russia, overseas buyers of Turkish rebar have started to postpone their purchases given their expectations of a further decline in Turkish rebar export offers. Turkish steel producers' rebar export offers to West and Central Africa have decreased by $8/mt on average over the past week to $340-345/mt FOB. Market players state that Turkish rebar offers to Egypt have been in the range of $345-355/mt this week, while demand in the Egyptian market has been quiet in the same period since buyers are waiting for local producers' rebar price announcements which are due to be made at the beginning of December.
 
Last week, Turkish steel producers concluded deals to the UAE, their most important rebar market, for a total of 40,000 mt of rebar at $348-352/mt CFR on theoretical weight basis. This week, ex-Turkey rebar offers to the same country have been in the range of $345-347/mt CFR on theoretical weight basis, but have failed to attract buyers' interest. Following the deals concluded last week, inventories of UAE-based buyers have increased to high levels ahead of the New Year. As a result, they are now unwilling to conclude new transactions before working through their stocks.
 
Meanwhile, Turkish rebar offers to the US have declined by $5/mt over the past week to $345-355 CFR FO US Gulf ports. Turkish steel producers have reduced their rebar offers to the US this week in order to conclude new deals. However, in particular due to the Thanksgiving holiday, demand for Turkish rebar in the US market has been slack during the past week. Meanwhile, Japanese rebar suppliers have used the advantage of the US dollar gaining strength against the Japanese yen to give offers to the US market at $335/mt CFR, creating stronger competition for Turkish rebar exports.