Turkish rebar export prices move up amid higher production costs

As a result of the rises seen in scrap prices since the beginning of February, Turkish steel producers' production costs have increased and so they have raised their rebar export prices by $10/mt on the lower end week on week to $435-481/mt FOB on actual weight basis.
 
Turkish steel exporters are still receiving inquiries for billet and long steel from Far Eastern buyers since Chinese billet and finished steel prices have increased rapidly over the past week. However, it is also known that Turkish exporters' offers to the region are considered to be on the high side. Accordingly, Far Eastern buyers of billet and long steel are focusing on alternative sources such as Vietnam, the Middle East and the CIS. For now, Turkish steel producers are not expected to conclude sales to the region.
 
Following the upward movement of Turkish rebar export offers in line with the rises in scrap prices, Turkish steel mills have lost their price advantage in the United Arab Emirates (UAE). Buyers in the UAE consider domestic mills' rebar offers to be more attractive. There is no demand for Turkish steelmakers' offers which are currently at $450-455/mt CFR on theoretical weight basis.
 
In Egypt, another major export market of Turkish exporters, purchases of Turkish rebar have come to a halt after the antidumping (AD) investigation opened for Turkish rebar imports at the end of December. Over the past week, no improvement has been recorded in demand for Turkish rebar in the country. Under these circumstances, Turkish steel producers have not yet determined a new price policy for Egypt and are waiting for details of the AD investigation.
 
Likewise, buyers in the US are showing no interest in Turkish rebar offers due to the ongoing AD investigation, while rumors have been heard that the announcement of the preliminary determination in the case may be delayed beyond the scheduled date of February 28. While Turkish steel mills' offers to the US are still at $480-490/mt CFR on theoretical weight basis, it is known that they are adding a certain antidumping margin to their rebar export quotations to the country as they are taking the possible outcome of the trade case into consideration. Market sources believe Turkish steel producers are unlikely to conclude sales to the US until after the announcement of the preliminary AD determination.
 
As demand for Turkish rebar in the major export markets remains weak, Turkish steelmakers are focusing on other markets where they usually sell smaller tonnages. However, after Turkish mills' latest hike in their rebar export prices, buyers in Lebanon, Saudi Arabia and Europe consider the new price range at $435-440/mt FOB on actual weight basis to be on the high side. Meanwhile, Italian rebar offers to Lebanon at $425/mt FOB are found to be more attractive and SteelOrbis has been informed that Italian suppliers have concluded deals to the country for a total 10.000 mt of rebar. On the other hand, market sources also report that rebar sales to Yemen and African markets from Turkey's Iskenderun region have been concluded at $435-440/mt FOB on actual weight basis.