The falling trend in Turkish rebar export offers came to a halt this week. Turkish producers are not willing to make offers below $620/mt FOB to Europe for July shipments. The latest bookings concluded to the markets, such as Israel, were at $600-605/mt FOB. Turkish producers expect rebar export prices to increase in the short term due to the slight movement in the scrap and billet markets.
This week's price level of imported rebar in the UAE market is at around AED 2,400-2,430/mt ($653-662/mt) delivered to site on a theoretical weight basis for 3- and 5-month deferred payment, excluding VAT. Turkish producers, which had even made offers at $620/mt CFR on theoretical weight basis last week, are not inclined to mention the above numbers this week. Customers have preferred to stay out of the market as they wait to see which way the situation goes. According to reports, some trading firms have increased their offers for Chinese origin rebar to $585/mt CFR on theoretical weight basis. Despite this, there are reportedly still offers at $570/mt CFR on theoretical weight basis. Market players are curious about the attitude which Chinese producers will adopt after the holiday.
The Egyptian producers' export prices for rebar are still at $620-625/mt FOB on actual weight basis for June/July shipments. The fact that CIS billet offers, which were at $525-530/mt CFR last week, have disappeared this week, may change the situation of the Egyptian market during the week ahead.
Overall, southern Europe was out of the market due to the May 1 holiday, and has not really adapted to the post-holiday situation yet.
The prices are still the same in the Italian market. Although the producers' base prices are at €350-360/mt, it is possible to find base prices at around €340/mt. Customers are trying to create pressure on producers' prices due to the market situation in April and the expectation that business will slow down in summer. Furthermore, the movement in the Italian domestic billet market along with the fall in CIS billet prices last week has strengthened customers' expectations that prices may fall. On the other hand, the producers are resisting this pressure: they prefer to wait and see how the slight movement in the billet and scrap markets will affect the rebar market. Italian rebar offers for North Africa are at around €500-505/mt FOB. Offers approaching the level of €510/mt FOB seem to have experienced a slight correction. Although customers are trying to pull offers down to below the level of €500/mt, producers appear to be awaiting the price announcements of the Ukrainian producers for this month.
The price level of AENOR-certificated B500S 12 mm rebar in the local Spanish market is at €620-630/mt delivered to warehouse, excluding VAT. Base prices remain at around €400-410/mt. The market is still good for producers. Trading firms, which delayed their purchases due to the decrease in US and CIS scrap and billet prices, may return to the market as purchasers since the scrap and billet markets have rallied again.
The local rebar prices in the UK are at around £390-400/mt (approx. $775-795/mt) delivered to customers' premises on actual weight basis, excluding VAT. The UK rebar market is continuing its strong movement. Some producers in the domestic market have indicated price rises for the coming period. The imported rebar price in the UK is at around £370-380/mt ($735-755/mt) delivered to customers' premises.
The Middle East rebar market did not experience a positive period in April. On the other hand, the southern and northern European rebar markets are continuing their strong movement. Price increases were recorded in Spain, Portugal and the UK. Of the countries in southern Europe, only Italy has experienced a slowdown in its market. Size extras were increased in Italy at the beginning of April. However, subsequently, base prices were reduced and final prices fell as a result. Italian customers put pressure on producers in late April due to the fall in the CIS and Turkish billet prices. A slight softening has been seen in Eastern Europe due to the pressure from Turkish rebar. Bulgarian producers, which concluded sales at $650/mt FOB to North Africa in late March and early April, have indicated that they may conclude sales below the above level at the end of April. However, the increase at the beginning of May in billet and scrap offers for North Africa and the Middle East may help Turkish and Egyptian producers - which are important market players in the Mediterranean and Middle East - to increase their prices again. Even though the US market is not emitting good signals, the possible strong situation of the Russian market may contribute to the Mediterranean and Middle East rebar markets. Nevertheless, a good majority of customers prefer to wait for some clarification of the situation.