In Egypt, where Turkish steel producers' rebar offers were considered to be more attractive, Egypt-based steelmaker EZZ Steel announced its domestic rebar prices at EGP 8,548/mt ($963/mt) ex-works on November 1 but then reduced them to their previous level at EGP 7,350/mt ($828/mt) ex-works on November 2 due to the changes recorded in the Egyptian pound-US dollar exchange rate. In the current week, EZZ Steel's rebar prices for November production have increased by EGP 1,850/mt week on week to EGP 9,200/mt ($551/mt) ex-works. Along with EZZ Steel, other Egyptian steel producers have also raised their rebar prices, though these rises are lower than Turkish steel producers' expectations. Turkish steel mills' rebar offers to the export markets have continued their sharp upward movement during the past week due to higher raw material costs. As a result, their rebar offers to Egypt have also increased by $7.5/mt week on week to $430/mt FOB on actual weight basis. Turkish producers have concluded no rebar deals in Egypt this week as they have lost their price advantage with Egyptian producers keeping their price rises below expectations. Accordingly, it is expected to be difficult for Turkish steel mills to continue their regular sales to Egypt in the short term.
Turkish producers have restarted giving offers to the United Arab Emirates (UAE) this week after staying away from the UAE market for some time and their offers to the country are currently at $445/450/mt CFR on theoretical weight basis. UAE-based buyers still consider Turkish rebar offers to be on the high side. As a result, buyers are expected to wait for the announcement by Emirates Steel Industries (ESI) of its new list prices before concluding any import rebar bookings.
On the other hand, with the presidential race concluding in the US, a positive sentiment prevails in the domestic rebar market. US buyers expect domestic rebar prices to increase further as they believe trading activities in the local US rebar market will accelerate due to the promises given during the election campaign and also due to the rises seen in scrap quotations. With buyers not resisting higher rebar prices as much as before, Turkish steel mills' have concluded deals in the country during the past week for a total of 45,000 mt of rebar at $465/mt CFR on theoretical weight basis. Meanwhile, Turkish steelmakers are expected to raise their rebar export prices further against the backdrop of higher production costs.