Turkish rebar export offers remain steady, demand declines

Posted on 08 November 2019

Source: Kallanish

Following last week’s increase, Turkish mills are observed to have kept rebar export offers stable this week. While there are still some producers offering rebar at the low and high extremes of $415/tonne and $430/t fob respectively, most offers are seen this week at $420-425/t fob actual weight.

Scrap seems to have stabilised in Turkey, with prices in the latest scrap bookings staying at $259-260/t cfr, unchanged on-week.

Global demand for rebar is said to have declined even from last week’s low levels, as buyers, who initially wanted some clarity in the market outlook, find current levels too high. Turkish mills’ price offers in the Asian market stand on the high side compared to other sellers. Qatar, being one of the toughest competitors in the region, is offering rebar at $415-420/t cfr theoretical weight, while Turkish mills’ offers stand at $440/t cfr.

A Turkish mill tells Kallanish: “Qatar does not let us sell with their very-low offer prices. Demand is already at low levels and competitors are very aggressive. They lower their prices while we increase. There is no way we can sell there.”

Yemeni and Israeli buyers, traditional customers of Turkish mills, continue inquiring for rebar. Some cargoes are heard to have been booked by Yemeni and Israeli buyers at $412-415/t fob Turkey. And some African buyers in Ethiopia are heard to have concluded Turkish rebar at $415/t fob.

Some Turkish mills are seen to be flexible in decreasing their prices below $415/t when there are regular customers or higher tonnages involved. However, as they rarely receive high-tonnage orders, most prefer not to decrease below $415/t fob, while selling small tonnages at higher levels, up to $420 fob actual weight.


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