SteelOrbis has been informed that Turkish rebar offers to the export markets have decreased by $13/mt on average over the past week to $390-400/mt FOB, mostly due to the gradual decrease of import scrap prices in Turkey beginning from the third week of this month to $230/mt CFR and due to the increase in bookings of low-priced Chinese billet by Turkish steel producers. Market sources state that Turkish exporters have concluded rebar deals in the given price range to Iraq and North Africa, while it is heard that one Turkish producer has this week concluded a deal for 10,000 mt of rebar at $390/mt FOB on actual weight basis.
Meanwhile, Turkish producers’ rebar offers to Dubai have moved sideways week on week in the range of $395-400/mt CFR on theoretical weight basis. UAE-based buyers have started to meet their rebar needs from their domestic market since local producer Emirates Steel Industries (ESI) has continued its aggressive price strategy and so local buyers’ demand for Turkish rebar has decreased accordingly. In this context, Turkish rebar export volumes to Dubai are expected to decrease in September.
Lastly, Turkish players’ rebar offers to the US market have declined by around $10/mt over the past week to $405-415/mt CFR FO US Gulf ports, on theoretical weight basis. Market sources state that they are surprised at the decreases seen in Turkish rebar offers and add that they are sure that Turkish mills are using low-priced Chinese billets in addition to imported scrap in their rebar production. Accordingly, US-based buyers think that prices have not yet reached the bottom and consider that further decreases are likely to be seen in the coming period, and so they are postponing their bookings for now.