Turkish rebar mills fail to see desired demand levels in export markets

Turkish rebar mills were expecting increased market activity after Ramadan and the summer holidays and were hoping to conclude new bookings. However, due to the uncertainty in the market created by aggressive offers from China, which have attracted buyers' attention in Turkey's traditional export markets and resulted in some transactions, demand for Turkish rebar in these markets is fairly low. Buyers are currently adopting a wait-and-see stance in order to keep an eye on future market trends and the stagnancy in the market is creating further difficulties for Turkish mills.
 
Although the relatively positive mood after China's approval of new infrastructure investments and some increases in iron ore prices is expected to be reflected in the long steel markets, this is not expected to happen immediately or as significantly as anticipated, due to high inventory levels in China. Market players think that the Turkish rebar market will gain clearer shape following new scrap transactions, and they state that the current uncertainty is the main culprit behind the stagnancy of the market.
 
Turkish mills' rebar export offers are currently standing at $595-600/mt FOB, down from last week's price level of $600-610/mt FOB. According to market sources, some transactions have been concluded from Turkey at $595/mt FOB and mills are ready to push their prices down further from $595/mt FOB for larger orders.
 
In the Turkish domestic rebar market, on the other hand, spot prices are standing at TRY 1,085-1,110/mt ($600-613/mt) + VAT ex-warehouse. This week, activity levels in the Turkish domestic rebar market have increased due to the lower inventory levels of traders, though demand coming from end-users is still low.