Turkish rebar export prices have declined by $5/mt week on week to $430-480/mt FOB on actual weight basis. Although Turkish rebar sales for small tonnages to markets such as Africa, Ethiopia, Israel and Romania are still heard, buyers in the export markets mostly consider Turkish rebar quotations to be on the high side. As a result, demand for Turkish rebar in overseas markets is weak. Meanwhile, actual Turkish rebar deals to export markets are heard at $430-435/mt FOB on actual weight basis.
Last week, Egypt issued temporary antidumping (AD) duties for rebar imports from Turkey within the scope of the AD investigation opened at the end of December last year. Accordingly, as of June 6, Egypt started to impose AD duties on rebar imports from Turkey, for a period of four months, ranging between 10 percent and 19 percent. Even though there were initial expectations that demand for Turkish rebar in Egypt would come to a halt, demand for Turkish rebar has still be seen despite Ramadan. Accordingly, a Turkish steel mill concluded a rebar sale to the country in the current week at $440/mt CFR on actual weight basis. It is reported that the price level of $440/mt CFR does not include the AD duty which will be paid by the buyer. Additionally, demand for billet in Egypt has been lively. Market sources state that a Turkish steel producer concluded a billet sale to Egypt at the beginning of the current week at $405/mt FOB and that Egyptian buyers are continuing to make price inquiries for Turkish billet.
Although trading activity in the United Arab Emirates (UAE) has slowed down slightly due to Ramadan, UAE-based buyers have continued their purchases amid expectations of a decline in domestic rebar supply due to the embargo imposed on Qatar. Accordingly, domestic rebar prices in the UAE have moved up. Although no new price level has been heard in the UAE for Turkish rebar, market sources believe that demand in the UAE for Turkish rebar may increase slightly after Ramadan, especially due to the absence of supply from Qatar.
While market players are waiting for the result of the Section 232 investigation, Turkish steel mills are still avoiding rebar sales to the US. Meanwhile, Turkish steel mills are responding to inquiries made by US buyers, with prices in the range of $500-510/mt CFR on theoretical weight basis, and are anxious to ensure that any potential costs accruing from the Section 232 investigation will be carried by US buyers.