During the past week, Turkish rebar export prices have increased by an average of $10/mt to $500-520/mt FOB on actual weight basis, supported by higher import scrap prices in Turkey. Additionally, Turkish steel producers’ fairly full order books thanks to domestic bookings as well as the ongoing price inquiries they receive from international buyers have provided support for their decision to increase their export offers.
In markets such as Israel, Bulgaria, Africa and Romania, where Turkish mills usually conclude sales of small rebar tonnages, buyers have started to accept Turkish rebar offers at $510/mt FOB on actual weight basis. However, there have not been many sales to these regions in the current week.
Along with these markets, in the Far East - Chinese mills’ biggest target market for exports - price inquiries for Turkish rebar continue to be heard due to the sustained strength of Chinese billet and rebar export quotations. However, Turkish rebar exports have failed to provide a serious cost advantage compared to Chinese suppliers, and so Far Eastern buyers are in no rush to conclude transactions for Turkish rebar. As a result, no new rebar sale from Turkey to the Far East has been heard this week.
Demand for Turkish rebar in the United Arab Emirates (UAE), which has been poor for some time now, has continued to remain poor during the past week, with no sales heard to this market, which has normally been an important export market for Turkish rebar. Market sources state that Turkish steel mills’ new offers to the UAE are estimated to be at $510/mt CFR on theoretical weight basis, though this price range is considered to be on the high side for UAE-based buyers.
It is reported that there is no demand for Turkish rebar in Egypt since Turkish rebar price levels for this destination have reached $520-530/mt CFR on actual weight basis due to the 10-19 percent dumping margin added to deal prices.
The cautious mood surrounding the trading market between Turkey and the US due to the Section 232 probe has become slightly more relaxed after President Donald Trump’s comments that the results of the US Section 232 investigation into imported steel may require more time. As the domestic rebar market moves up in the US, buyers’ price inquiries for Turkish rebar continue to be heard and negotiations between Turkish sellers and US buyers are proceeding amid the slightly more relaxed atmosphere. Given the addition of the dumping margins of 5.39-9.06 percent imposed for Turkish rebar imports in the US, Turkish steelmakers are unwilling to conclude rebar sales to the US below the price level of $550/mt CFR on theoretical weight basis.