The upward movement of Turkish rebar offers to the export markets has continued for the sixth consecutive week. Turkish steel producers have increased their rebar export prices to the export due to their higher production costs caused by the ongoing increases seen in global billet and scrap quotations. During the past week, Turkish rebar export offers have increased by $25/mt on the lower end and by $35/mt on the upper end to $510-530/mt FOB. Buyers in Turkish producers' important target markets such as Egypt and the United Arab Emirates (UAE) are in no rush to conclude new deals despite the sharp hikes recorded in their local markets. Instead, they are maintaining a wait-and-see approach while keeping a close watch on import rebar offers.
As mentioned in SteelOrbis' latest report on April 22, Emirates Steel Industries (ESI), based in the UAE, one of Turkey's most important rebar export markets, has increased its rebar prices for June production by $165/mt to $620/mt ex-works, as compared to its previous prices announced on April 6 for May output materials. Following ESI's announcement, Turkish rebar offers to the UAE have risen by $42.5/mt on average week on week to $535/mt CFR, on theoretical weight basis. In April, buyers in the UAE concluded several deals for a total of 100,000 mt of Turkish rebar. As a result, they are in no rush to conclude new rebar deals.
Starting from the middle of March, buyers in the US had concluded many ex-Turkey rebar deals over a one-month period. Since their inventory levels are still on the high side, they have continued to maintain a wait-and-see stance this week. In the current week, no new ex-Turkey offers have been heard in the US.
Meanwhile, Egyptian steel producers have raised their rebar quotations by $85-115/mt month on month to $584-613/mt ex-works, excluding eight percent VAT. Currently, Turkish rebar offers to Egypt are in the range of $520-530/mt CFR, on theoretical weight basis. Although Turkish producers' rebar offers to Egypt are now more attractive than domestic rebar offers, buyers had purchased large tonnages of import rebar before March 15 as no registration was needed for importers to Egypt before that date. As a result, Egyptian buyers' inventories are still on the high side and so they are in no hurry to conclude new rebar deals.
Turkish rebar offers to the export markets are expected to increase further in the coming days as the upward trend of import scrap quotations has continued. Considering the higher prices of domestic rebar prices in the UAE and Egypt, Turkish rebar offers to these countries are expected to gain acceptance from buyers.