Turkish rebar export sales revive with deals to Far East

Following the sales heard in the current week, Turkish rebar export prices have softened by $8/mt on the lower end to $420-475/mt FOB on actual weight basis.
 
Far Eastern buyers had been procuring their rebar needs from China for a long time. But following the sharp increases recorded in Chinese rebar export quotations Turkish exporters' rebar offers have become more attractive, resulting in Turkish rebar sales to Singapore and Hong Kong in the current week. A Turkish producer has concluded a sale to Singapore this week for 20,000 mt of rebar at $448/mt CFR on theoretical weight basis, while market sources report that another Turkish mill has concluded a sale to Hong Kong also this week for 50,000 mt of rebar at $450/mt on actual weight basis. If Chinese rebar export prices maintain their current levels in the coming period, it is believed that demand for Turkish rebar may increase further in the Far Eastern markets and that Turkish rebar sales to the region may continue.  
 
Demand for Turkish rebar in Egypt is still at low levels, while Egyptian buyers are still maintaining their wait-and-see stance, with their inventories at decent levels. The latest Turkish rebar deal in Egypt was concluded last week at $430/mt FOB on actual weight basis. However, Turkish steel producers who have export permits for Egypt consider current price levels to be unattractive and demand to be very weak, and so they have preferred to stay away from the Egyptian market during the past week.
 
In the previous week, approximately 60,000 mt of rebar was sold to the United Arab Emirates (UAE) by Turkish steel producers in the range of $435-445/mt CFR on theoretical weight basis. In addition to these sales, Turkish mills have concluded deals to the UAE in the current week for around 20,000 mt of rebar at $430/mt CFR on theoretical weight basis. UAE-based traders have reduced their domestic rebar offers slightly during the past week to be able to compete with Turkish exporters. If Turkish rebar sales to Far Eastern countries continue in the coming days, Turkish rebar supply available for the UAE market is predicted to decline. It is believed that the resulting decrease in competition may reduce the downward pressure on UAE-based traders' domestic rebar prices.
 
Meanwhile, Turkish steelmakers' rebar offers to the US have remained unchanged over the past week at $470-475/mt CFR. In parallel with the rises seen in scrap quotations, domestic rebar prices in the US are expected to increase further. However, since buyers in the US want to ensure a price advantage in import rebar purchases, they show little interest in Turkish rebar offers and are demanding lower prices.