The uptrend in the semi-finished steel markets observed in Turkey since last week has made its influence felt in Turkish export rebar offers. Due to the increase in CIS billet export offer prices, Turkish rebar export offers are observed to have halted their downtrend and entered a stable trend. While the CIS origin billet offers have increased by $10-15/mt in the last two weeks, buyers have been maintaining a wait-and-see stance in the last week as they have not been sure whether the uptrend would continue.
Due to the uptrend in CIS billet prices Turkish rebar producers have adjusted their prices to $450-460/mt as of the middle of last week, from the previous two weeks' level of $445-450/mt FOB.
Additionally, importer buyers are not in a rush to buy material as they see that there is uncertainty in the raw material and finished steel markets in general. For example, importers in the UAE are not considering current Turkish rebar offers (which are not at competitive prices compared to the UAE domestic levels) but are waiting instead for new offers from Turkey.
While end-user demand in Saudi Arabia is on a stable trend, the price increases which had been anticipated for the post-Ramadan period have not yet materialized in this country due to the uncertainty in the international markets.
On the European side, the softening in export offers has been reflected slowly in the local markets. While list prices have remained unchanged in some regions, it is known that transaction prices are lower compared to the list price levels. With Italian, Spanish and Greek producers' rebar offers for export at €320-330/mt FOB, Algeria, one of the main rebar markets for the countries mentioned, is still silent. While raw materials are mainly determining rebar prices in Europe (inspiring a downtrend after the end of the previous uptrend), demand is still at low levels in the region in general. Due to the stagnant construction sector in Europe, ups and downs have been observed as regards apparent demand, whereas no uptrend has been seen on the actual demand side for a long time.
It is thought that possible price movements in the rebar markets during the current week will be influenced not only by demand but by raw materials as well, and that the markets will gain greater clarity.