Due to the continuation of high political tension in the traditional export markets of Turkish rebar mills, export sales from Turkey have remained on the low side this week.
Since the market uncertainty has prevailed in most of the Middle Eastern markets, the buyers in this region were reluctant to conclude new rebar bookings and so Turkish rebar producers have started to seek alternative export markets. In recent weeks, rebar demand from some countries in Central America, South and East Africa and Far East has provided some relief for Turkish rebar producers in a period when demand shows such weakness. Nevertheless, the uncertainty in the Middle East seems to continue affecting Turkish mills in the coming months.
This week, Turkish rebar producers' export offers were standing at $675-685/mt FOB. While no more cargoes are available at mills for March shipments; some producers are about to begin conducting maintenance works thus the market has trended sideways this week.
In the Turkish domestic rebar market, demand hasn't showed a true revival yet, raising traders' worries who had positive expectations for the domestic market. In addition, end-users have continued their rebar bookings in low volumes, delaying their high volume orders and this has prevented local traders' price hike anticipation to fully materialize. Towards the end of the current week, rebar prices in the Turkish domestic market have settled at TRY 1,042-1,055/mt ($655-663/mt) + VAT.
On the other hand, world steel markets are still trying to assess likely effects of Japan's Tōhoku earthquake on steel markets and this uncertainty beclouds predictions as regards to future trends in the raw material markets. Witnessing weak demand in their traditional rebar export markets, Turkish mills are foreseen to continue looking for alternative markets in the coming days.