Turkish rebar export offers increase further

The unrelenting upward movement of Turkish rebar offers to the export markets during the past month, has continued in the current week, with export prices increasing by $30/mt on the lower end and $20/mt on the upper end to $470-480/mt FOB today, April 15. The main reason for this ongoing upward price movement is believed to be the higher production costs caused by the rises seen in global scrap and billet quotations. Meanwhile, demand for Turkish rebar in the export markets has remained at medium levels during the past week. However, with today's upward revision in Turkish rebar export prices, buyers in the target markets have started to consider current price levels to be on the high side. On the other hand, local steel producers in these target markets have also increased their domestic rebar prices further. As a result, it is thought that Turkish rebar export quotations will gain acceptance despite the latest increase.
 
In the current week, a Turkish steelmaker has concluded a deal in the United Arab Emirates (UAE) for 12,000 mt of rebar in the range of $450-460/mt CFR, on theoretical weight basis. Since this sale, Turkish rebar offers to the UAE have increased to $460-470/mt CFR on theoretical weight basis. Also, UAE-based steel producer Conares has announced its rebar prices for July output at AED 1,875/mt ($511/mt) CPT, following the completion of its sales for May and June output at AED 1,650/mt ($450/mt) CPT. In line with the upward revision in Turkish rebar export prices today, it is reported that offers lower than $470/mt CFR UAE are now unavailable. Accordingly, Turkish mills' offers to the UAE are currently in the range of $470-480/mt CFR, on theoretical weight basis.
 
Meanwhile, Turkish rebar offers to the US have increased today, April 15, to $480-490/mt CFR, on theoretical weight basis. It is observed that buyers in the US market have been maintaining a wait-and-see approach, while their inquiries are now for lower volumes instead of large volumes.
 
$1 = AED 3.67