The weakening of the euro against the US dollar has caused ex-Europe rebar prices to soften further in the international markets. Even though European origin rebar offers are still standing at €480/mt FOB on euro basis, the offers have declined to the level of $586/mt FOB on dollar basis given the increased strength of the dollar.
As a result of these developments, downward pressure has increased on export prices of countries which conclude deals on dollar basis, and so it is thought that ex-Turkey and ex-CIS rebar offers will soften further. Indeed, if the weakening of the euro against the dollar continues, ex-Turkey and ex-CIS offers will not be able to avoid downward corrections.
On the other hand, despite their offers at lower prices, the Europeans have been experiencing difficulties in finding buyers amid the ongoing sluggishness and caution in the global markets. Meanwhile, current rebar offers from Europe to the Algerian market stand at €490/mt ($598/mt) CFR, though no deals have been concluded yet at this price level.
€1 = $1.22
Weakening of euro against dollar affects ex-Europe rebar prices
Tags: Rebar Longs Turkey Algeria Africa Mediterranean Middle East Non-EU Countries CIS Europe North Africa Steelmaking
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