Over the past week, Turkish rebar producers have still found it difficult to attract orders for large volumes from the global market, though they have continued to conclude export sales of small tonnages. In this context, a Turkish steel producer has concluded a rebar deal to Israel at $510/mt FOB, while another Turkish mills has sold 6,000 mt of rebar to Romania at $506/mt FOB, both on actual weight basis, according to market sources.
Following their scrap purchases made in previous weeks, Turkish steel producers’ scrap bookings have slowed down over the past week, while they have exerted additional pressure on scrap prices. Ex-US HMS I/II 80:20 scrap bookings in Turkey, which were made at $340/mt CFR during the week ending November 9, have been concluded at $353/mt CFR this week. Since Turkish mills have successfully reduced their scrap transaction prices and since the sudden price cuts made by Chinese rebar exporters this week have caused global rebar demand to weaken, with international buyers seeking to increase pressure on rebar prices, Turkish rebar producers have decreased their export prices by $5/mt week on week to $505-510/mt FOB, on actual weight basis.
As nothing has changed in terms of the 50 percent duty on Turkish steel exports to the US, no ex-Turkey rebar deal has been concluded in the US in the given period. As for the European market, where 64 percent of the import quota for rebar, due to expire in February next year, has been used up, bookings of large volumes of Turkish rebar are not expected in the coming period, though deals for low tonnages are not expected to be a problem as regards the quota limitation.