After the White house announced that the 50 percent duty on Turkish steel imports has been halved to 25 percent as of May 17, most Turkish rebar producers have adopted a wait-and-see stance before determining their new export prices. In August 2018, the US imposed an additional 25 percent duty only on Turkish steel imports, having already announced Section 232 steel tariffs of 25 percent in March of the same year.
The most recent rebar export offers from Turkey were at $460-470/mt FOB. However, now having an opportunity to return to the US market following the halving of duties in the US, Turkish mills are waiting to see actual demand levels from the US market as well as the impact of the US decision on other markets. As a result, Turkish rebar producers are observed to be unwilling to share their rebar export quotations today, May 17. Players in the international rebar markets are waiting with bated breath to hear Turkish mills’ new price levels since an increase in Turkish steelmakers’ offers is believed to be inevitable against the backdrop of the rises recorded in scrap quotations over the past two days.
Although Turkish producers have been trying to compensate for the loss of sales to the US with sales to South America, North Africa and the Middle East, they have been experiencing difficulties in export sales due to the European Union’s import quotas. With the US decision to cut duties on imports from Turkey, Turkish steel mills’ bargaining power in the international markets is expected to increase.
On the other hand, rebar sales from Turkey to its traditional markets for small tonnages such as Yemen and Israel have been continuing. Additionally, SteelOrbis has been informed that Turkish rebar suppliers are still receiving price inquiries from eastern and central African countries.
Market players are now waiting to see how international buyers react when Turkish suppliers annouce their new rebar export prices.