Turkish producers' rebar offers to the export markets have remained in the range of $560-570/mt FOB over the past week. Demand in the Middle Eastern markets for Turkish rebar has been on the low side during the same period, while transaction activities are expected to remain weak due to the approach of the Feast of Sacrifice Holiday (October 4-7).
For some time now, it has been harder for Turkish rebar producers to compete with cheaper Chinese offers in the export markets and it is getting harder for them to maintain their current prices. Increasing volumes of Chinese rebar imports in the UAE, Egypt, Lebanon, Libya and other countries in the region threaten the market share of Turkish producers in these destinations.
Demand for Turkish rebar in the Middle Eastern and North African markets is not expected to improve after the holiday, while the situation is expected to lead to a gradually declining trend in Turkish rebar producers' prices. In the light of all the negative conditions above, Turkish rebar producers' activities in the export markets are unlikely to improve in the short run. In the coming days, Turkish rebar producers are expected to cut their production capacity utilization rates and lower their rebar supply volumes.