Following the sharp rises seen in import scrap quotations this week, Turkish rebar producers have tried to increase their export prices to $530-540/mt FOB, though the accepted price range in the international market is still at $520-530/mt FOB on actual weight basis, unchanged as compared to last week.
As well as the rises seen in import scrap prices in Turkey, the high price levels of Chinese finished steel export quotations were expected to provide support for the price hike targeted by Turkish mills. However, Turkish steelmakers’ rebar export prices have come under downward pressure from the weakness of demand and also as CIS-based suppliers’ rebar export prices are lower as compared to Turkish mills' export prices. Additionally, in the current week, report have been heard of an ex-CIS rebar sale to Lebanon - one of the markets to which Turkish producers regularly conclude sales - at $490/mt FOB on actual weight basis.
Having received rebar demand from Egypt last week for the first time after a long interval, Turkish steel mills’ offers to this destination were at $535-540/mt CFR on actual weight basis, but these offers failed to gain acceptance. As a result, it is observed that Turkish rebar exporters have not given any new offers to Egypt over the past week. Meanwhile, market sources state that the ongoing 10-19 percent antidumping margin imposed on Turkish rebar imports makes Turkish prices unattractive to Egyptian buyers.
It is also observed that demand for Turkish rebar in the United Arab Emirates (UAE) and the US has not indicated any improvement during the past week and is still weak. UAE-based buyers have been supplying their rebar needs from their domestic market for a long time now and so demand for Turkish rebar has failed to improve in the country. Also, with UAE-based steel mills reducing their domestic rebar quotations for December output this week, demand for Turkish rebar is not expected to improve in the short term. Meanwhile, price inquiries from UAE-based buyers for Turkish rebar continue to be heard, but no new Turkish rebar deal has been heard in the current week, as market sources report.