Turkish rebar export prices indicate upward movement

Demand for Turkish rebar in the export markets has improved in the current week, though it still remains on the slack side. Turkish rebar export prices have increased by $10/mt in the same period to $320-340/mt FOB against the backdrop of the rises seen in import scrap and semi-finished steel quotations in Turkey. Market sources state that demand for Turkish finished steel in the export market has improved slightly but it is impossible to provide any indication of a real increase, hence the rises seen in finished steel export prices are foreseen to be short-lived.
 
Following the Turkish rebar deals concluded in the United Arab Emirates (UAE) last week in the range of $320-325/mt CFR, Turkish steel producers have increased their rebar prices to $327/mt CFR, on theoretical weight basis. After concluding rebar deals in the UAE for a total of 10,000 mt rebar, they have once again raised their rebar prices to $335/mt CFR, on theoretical weight basis. However, buyers in the UAE has considered this price in question to be on the high side, stating that their targeted price level for Turkish rebar purchases is at $330/mt CFR.
 
Meanwhile, the upward movement recorded in Turkish rebar offers have failed to gain acceptance in the US where rebar stocks at ports are still at high levels. Considering the weakness of demand in the local US rebar market, buyers believe the upward trend seen in Turkish rebar prices will be short-lived. Also, US-based buyers are asking for discounts and exerting downward pressure on Turkish rebar prices, while they are postponing their Turkish rebar purchases in the meantime.