In the last week of March, despite the anticipation of increased transaction activity in the Turkish domestic rebar market, demand has still not shown any significant improvement.
Early this week, rebar prices in the local Turkish market were standing at TRY 1,017-1,047/mt + VAT ($660-680/mt), depending on the region. Reductions in their rebar supplies by some steel mills in Turkey's Marmara and Aegean regions have prevented oversupply and provided stability for the mills' rebar prices. However, in Turkey's Iskenderun region, the prices of large-size rebar have dipped below TRY 1,017/mt ($660/mt) + VAT from time to time. Since anticipations of a demand revival did not materialize at the end of March, traders' views on the prospects for the market have become ambiguous, while end-users' expectations for a price decline have caused transactions to slow down. Towards the end of the week, following a slight downward correction in the upper end of the price range, rebar prices have settled at TRY 1,017-1,042/mt ($660-677/mt) + VAT, depending on the region.
Due to the ongoing political turmoil in the Middle East, which is Turkish rebar producers' major export market, the demand in this region has been sluggish. Turkish mills' rebar export offers, which were standing at $670-680/mt FOB level last week, have showed only a marginal decline, settling at $670-675/mt FOB. However, market sources indicate that for large volume orders, prices $5/mt below this price range are also attainable.
This week, some Turkish mills' rebar export offers to the UAE market have been at $680/mt CFR on theoretical weight basis. In this week's Iraqi rebar market, activity levels have been moderate, with Turkish mills' export offers to this market at $665-675/mt ex-works. In the meantime, it is reported that some Turkish steel producers have tried to sell additional tonnages to the US, following their previously concluded transactions to this destination.
Egyptian steel producer EZZ Steel has lately announced that it will keep its rebar sales price for April at its previous level of EGP 4,350/mt ($730/mt) ex-works. Assessing this move, some market players think that Egyptian buyers' demand for Turkish origin rebar may indicate a significant increase in the coming period.
In the Turkish mills' latest scrap transactions concluded last weekend, scrap prices have shown some softening and activity in the scrap market has been quiet ever since. On the other hand, the finished steel market has been characterized by stability. Nevertheless, the finished steel market is expected to gain greater clarity, once Turkish mills conclude new scrap bookings.
$1 = TRYT 1.54