Trading activity in the target markets of Turkish
rebar exporters has remained sluggish for the second consecutive week. During the past week, Turkish steel producers have reduced their
rebar export offers by $18/mt on the lower end to $430-475/mt FOB on actual weight basis. With the influence of the sharp depreciation of the Turkish lira against the US dollar over the past week, demand in the local Turkish
rebar market has nearly come to a halt, causing Turkish
rebar suppliers to focus on their export sales.
At the beginning of the current week, Turkish
rebar offers to the United Arab Emirates (UAE) were at $455-460/mt CFR on theoretical weight basis. However,
rebar offers from
Turkey to the UAE have softened by $17.5/mt in the following days to $440/mt CFR on theoretical weight basis amid the declines recorded in domestic
rebar prices in the UAE and as Turkish steel producers have maintained a more competitive price strategy as regards exports after domestic
rebar demand in
Turkey nearly ground to a halt. Market sources report that no new Turkish
rebar deal in the UAE at this latter price level has been heard yet, while it is thought that Turkish steel producers may reduce their
rebar offers to this destination further in the coming days against the backdrop of the declines seen in import scrap quotations for
Turkey.
Due to the antidumping case launched by the Egyptian authorities in the last week of 2016 against
rebar imports from China, Ukraine and
Turkey, demand for Turkish
rebar in Egypt is still very weak. Meanwhile, Turkish steel producers'
rebar offers to this country are currently at $430-440/mt FOB on actual weight basis. It is observed that Egyptian buyers are uninterested in Turkish
rebar offers. Additionally, Egyptian buyers, who are seeking for more advantageous import
rebar offers due to the trade cases in question, are expected to maintain a cautious stance, and so the downward pressure on Turkish
rebar offers to Egypt is expected to continue. The most recent
rebar sales from
Turkey to Egypt were for small tonnages concluded two months ago at $450/mt FOB on actual weight basis.
Lastly, Turkish
rebar offers to the US have remained unchanged over the past week in the range of $470-475/mt CFR, while domestic
rebar quotations in the US have continued their upward movement. Market sources report that no new transaction has been concluded in the US for Turkish
rebar in the current week. Also, it is thought that Turkish
rebar offers to the country may rise in the coming days if the uptrend of the domestic
rebar quotations in the US continues.