SteelOrbis

Turkish rebar export prices continue their upward movement

Friday, 17 February 2017 17:48:12 (GMT+3)   -   Istanbul

During the past week, Turkish rebar offers to the export markets have increased by an average of $20/mt to $425-481/mt FOB on actual weight basis, supported by the ongoing rises seen in import scrap prices since the first week of February.
 
In the Far East - China's traditional target market - Chinese long steel prices are still considered to be on the high side due to their continuing upward movement as of February 7. As a result of China's high-price policy, Far Eastern buyers' interest in Turkish billet, rebar and wire rod has remained strong. However, in parallel with the rises seen in scrap prices, Turkish steel mills have increased their semi-finished and finished steel offers to the region to $435/mt CFR on theoretical weight basis. This new price level has failed to gain acceptance from Far Eastern buyers, though they still continue to make inquiries for Turkish steel. Since the firm bids of buyers in the region have been lower than current price offers from Turkey, no new actual sales from Turkey to the region have been concluded in the current week.
 
Last week, Turkish steel producers' rebar offers to the United Arab Emirates (UAE) were at $420/mt CFR. But as of the beginning of the current week, this price range had lost its validity, with Turkish rebar prices to the UAE increasing by $20/mt to $440/mt CFR on theoretical weight basis. It is observed that this new price level is considered to be unattractive by UAE-based buyers and so they have not shown any interest in Turkish rebar offers.
 
Meanwhile, the wait-and-see stance maintained by both buyers and sellers in the US import rebar market since the beginning of February has continued during the past week, as they are still waiting for the preliminary decision in the antidumping (AD) duty and countervailing duty (CVD) investigations against Turkish rebar which will be announced at the end of the month. Accordingly, demand for Turkish rebar in the US market has remained at low levels, while Turkish steelmakers have increased their rebar offers to the country by an average of $27.5/mt week on week to $480-490/mt CFR on theoretical weight basis amid higher production costs, also adding a certain antidumping margin to their rebar export quotations to the US.
 
Likewise, demand for Turkish rebar in Egypt is at very low levels due to the AD and CVD investigations opened for Turkish rebar imports, while Turkish steel producers have not defined a new price policy for Egypt as there is no demand for Turkish rebar in the country since the filing of the AD and CVD investigations at the end of December 2016. Also, no revival in demand for Turkish rebar is expected until the uncertainties regarding the details of the said investigations are clarified.
 
Under the above circumstances, Turkish mills are experiencing difficulties in concluding finished steel sales to their main export markets and have had a relatively quiet week, focusing on other markets where they usually sell smaller tonnages. Market sources report that Turkish steelmakers have concluded deals to Europe at $425/mt FOB on actual weight basis, while they have made sales to Yemen and other African markets at $430/mt FOB on actual weight basis.


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