With the influence of the ongoing weakness of demand and the declines recorded in import scrap prices in Turkey over the past two weeks, Turkish steel producers' rebar export offers have declined further for the third consecutive week to $425-455/mt FOB on actual weight basis, falling by $5/mt on the lower end and by $20/mt on the upper end on week-on-week basis.
While increases in domestic rebar prices in the US have gained acceptance from buyers over the past week, demand in the local US rebar market has remained strong. However, it is observed that demand for Turkish rebar is still weak in the US as US-based buyers are looking for more advantageous import rebar offers. The price level recorded in a Turkish steel producer's ex-US scrap deal concluded this week was lower than the previous ex-US scrap transaction in Turkey concluded in December and also than the ex-US scrap offers heard in previous weeks. Lower production costs as well as weak demand have caused Turkish steelmakers to reduce their offers to the US by an average of $10/mt week on week to $460-465/mt CFR on theoretical weight basis.
While the local United Arab Emirates (UAE) rebar market is waiting for local producer Emirates Steel Industries (ESI) to announce its rebar prices for February, Turkish rebar offers to the UAE have fallen further by $5/mt on the lower end week on week to $435-440/mt CFR. The declines recorded in import scrap prices in Turkey, the weakness of demand for locally produced and import rebar in the UAE as well as with the downward movement of UAE-based traders' rebar prices have put pressure on Turkish steel producers rebar offers to this destination. As a result, Turkish steel mills have reduced their rebar offers to the UAE during the past week, as predicted.
Following the antidumping case launched by the Egyptian authorities in the last week of 2016 against rebar and wire rod imports from China, Ukraine and Turkey, demand for Turkish rebar in Egypt, which was already weak, nearly come to a halt. Over the past week, demand for Turkish rebar in Egypt has failed to improve, while downward pressure has continued to be exerted on Turkish mills' rebar offers. Accordingly, Turkish rebar offers to Egypt have declined by $7.5/mt week on week to $425-430/mt FOB on actual weight basis.