Rebar prices in the local Turkish market have increased this week to above $900/mt ex-works excluding VAT. The current rebar price range in the market in question is at $900-920/mt excluding VAT. Despite doubts expressed by the construction companies, the prices registered a sharp increase due to the activity seen in the export market and the conclusion of the winter season.
On the Turkish rebar export market side, prices have also increased sharply compared to the price levels of last week. This week, Turkish producers have been offering rebars for export to destinations other than the US and Persian Gulf markets at $910-950/mt FOB on actual weight basis for May/June shipments. There is currently a wide range of prices seen in the Turkish export market. While some Turkish producers, who have not been concluding sales to the UAE, have been giving offers for export at slightly above $910/mt FOB on actual weight basis, other mills, which have reportedly concluded some sales to the UAE at levels of up to $960/mt CFR and above on a theoretical weight basis, have been offering for export at price levels of up to $950-960/mt FOB on actual weight basis. It is observed that the most active market is the Persian Gulf for the time being.
Early this week, the price level of imported rebar in the UAE market increased to AED 3,700-3,750/mt ($1,007-1,022/mt), delivered to site on a theoretical weight basis for three- and four-month deferred payment, excluding VAT. It is expected that the local price levels may reach AED 4,000/mt ($1,089/mt) due to the rising import prices. On the import side, the latest deals concluded from Turkey have been at around 960$/mt CFR on a theoretical weight basis. Turkish producers are currently offering rebars at much more above from these levels for May/June shipment. On the other hand, due to the activity in the UAE, Chinese producers, who had not been in the market due to China's export duty and the iron ore price increase, are focusing on the UAE with producers from other countries such as Spain, Italy and Greece. Although the European producers' prices are fairly acceptable, sales to the UAE seem difficult as 'blue material' guarentees are generally not being given by producers from Europe. On the other hand, the Chinese producers' prices are at above $870/mt FOB. It is being reported that these prices are not attractive compared to the Turkish offers.
Ukrainian rebar producer Arcelor Mittal Kriviy Rih was offering rebars for export to the Middle East early this week at $830/mt FOB on actual weight basis for May shipment. Also, it is reported that the offers in question increased to $850/mt FOB towards the middle of the week. Due to the fact that Arcelor Mittal's mill in South Africa is experiencing difficulties due to the energy supply problems in that country, Arcelor Mittal is shipping most of the material produced at Arcelor Mittal Kriviy Rih, Ukraine, to the country in question. On the other hand, due to the strong situation in the Ukrainian and Russian domestic markets, Arcelor Mittal Kriviy Rih is acting cautiously with regard to exports and is not offering to every export market.
The overall European market is watching the international upward trend in a similar manner. However, the increase rates are not in line with those seen in the Middle East and Turkey.
The base prices in the local Italian market have reached levels of €330-340/mt The price level of medium size rebars to the local market is at €545-555/mt ex-works, with two to three months open account, excluding VAT. It would be difficult to say that demand in the local Italian market is currently strong. However, the prices in this market are being supported by the rising international prices and strong exports.
On the Italian export market side, offers are at €550-555/mt FOB for late April shipments. It is observed that the export market to North Africa (especially to Algeria) is fairly strong at the moment. On the other hand, it is reported that the Italian producers are seeking opportunities in the UAE and Israel due to the rising Turkish prices.
The extras in the local Spanish market have increased by approximately €30/mt as of March 12. The base prices are in the range of €350-370/mt However, with the recent increases the price level of Spanish origin 12 mm B500S rebar have reached €600-620/mt ex-works on actual weight basis with 30-day deferred payment, excluding VAT. On the other hand, following the latest export deals concluded last week at the level of €545/mt) FOB, the export offers have increased to above €550/mt The export offer prices may also increase after the upward movement in the local Spanish market.
No big change has been observed in the local Greek market. The rebar price level in this market is at €550-560/mt delivered to warehouse with three-month deferred payment. Greece is currently observed to be closed to imports, even to those from Italy. Market players expect that prices in the local market will increase very soon.
This week, due to the purchases in the UAE in particular, the prices in this country and in Turkey have registered rapid increases. Some supportive movements from Europe reflected these increases but they were of lesser degree. The Middle Eastern producers (especially those in Saudi Arabia) have been announcing to their customers that they will increase their prices again within a very short time. However, the market players are uneasy over the fact that increases have remained limited in certain regions. The players in question expect that the increase rate in the market will slow down if no support comes from the Middle East and Europe.