Turkish steelmakers have reduced their rebar export prices by $10/mt this week to $570-575/mt FOB. The Turkish mills have had to cut their export prices since the expected demand in September from the Middle East and North Africa (MENA) region has failed to materialize and as attractive Chinese offers are available in the region.
Middle Eastern buyers have been seeking lower prices from Turkey due to the ongoing declines in iron ore prices and amid aggressive Chinese rebar offers, with the result that demand for Turkish rebar has remained slack. In addition, the crisis in Iraq has negatively impacted Turkish exports to this country, though this week a deal has been concluded from Turkey's Iskenderun region to Iraq at levels of $575-580/mt ex-works, though for a small volume.
On the other hand, while US rebar mills had been expecting significant duty margins to be imposed on Turkish rebar imports in the final determinations of the US Department of Commerce (US DOC) in its antidumping (AD) and countervailing duty (CVD) investigations on rebar from Mexico and Turkey, Turkish producers have received zero dumping duty margins and have only received countervailing duty (CVD) margins in the range of 0.00-1.25 percent. Although this final determination has been greeted with satisfaction in Turkey, at the same time the weak demand situation in the Middle East prevents Turkish mills from raising their rebar export prices.