Turkish rebar export prices continue to slide down

Turkish mils' rebar export prices have continued to move downward, falling by $10-15/mt over the past week to $530-540/mt FOB amid a lack of demand on the export side and aggressive Chinese export quotations. Middle Eastern buyers state that Turkish rebar prices have continued to erode and so they are reluctant to conclude new bookings.
 
Meanwhile, Yemeni importers have been unwilling to book new materials because of the strong political tensions in the country. The most recent ex-Turkey rebar deal in Yemen has been concluded at $560-570/mt CFR, on theoretical weight basis. This week Yemeni buyers have started to look for new purchases but they are insisting that Turkish exporters should reduce their prices further. Because of the increased number of aggressive Chinese offers in Yemen, customers have started to negotiate with Turkish mills on their prices. On the other hand, the previous free trade agreement between Turkey and Egypt signed by the former Egyptian government of Mohamed Morsi was rescinded by the new government on October 28 on the grounds that it seriously harmed Egypt's economy. This has worsened the situation for Turkey's steel exports, which have already been facing negative conditions.
 
Up to the end of this year, it seems difficult to foresee positive developments for Turkish mills in their export markets and they will likely reduce their rebar export offers further.