Turkish mills are offering rebars for export to markets other than the Persian Gulf and US at $740-750/mt FOB on actual weight basis for April shipments. Turkish rebar producers, whose export markets have been relatively limited, had been offering at $730-740/mt FOB. However, following the sales concluded to markets such as Saudi Arabia, Israel and Latin America, almost all Turkish EAFs have started to make offers at $740/mt FOB and above.
On the other hand, Turkish EAFs have been maintaining their prices in the local Turkish rebar market at $740/mt excluding VAT (TRY 1,040/mt including VAT) and above. However, some rolling mills, which perform sales to the local market, have been concluding sales deals at $20/mt lower than the level mentioned due to the heavy wintertime conditions. Also, due to the fact that the local market is not so good, some rolling mills' offers are lower by $10-20/mt compared to the prices of the EAFs.
This week in Italy the base prices for rebars have been at €320-330/mt ($469-483/mt). Medium size rebar prices have this week been quoted in the range of €535-545/mt ($784-799/mt) ex-works on actual weight basis with 2-3 month deferred payment in the same market. It would be difficult to describe end-user demand as being very good. However, due to the fact that the Italian market has been closed to imports in recent times and the fact that the Italian producers' export levels have been fairly good, the prices in the local Italian rebar market have been continuing to trend up.
The Italian producers have concluded sales to North Africa at the level of €520/mt ($762/mt) FOB in the week ended February 15. It is possible to see price levels of €525-530/mt ($769-777/mt) FOB. Producers have not been so active in the export market. Most of them seem to be full until the end of March. For this reason, they are not inclined to sell much.
Despite the fact that the most recently announced base prices in Spain have been at €370/mt ($542/mt), it would be difficult to say that there have been deals at the base price level in question. The transaction base price is at €350/mt ($513/mt). 12 mm rebar is being quoted at €570/mt ($835/mt) ex-works with 30-day deferred payment. It is also heard that there have been some sales in the export market at €515/mt ($755/mt) FOB. On the other hand, it is heard that the Spanish producers have been receiving some offers from the US due to the freight advantage. However, the fact that all Spanish producers have been producing rebar with temcor, and also the fact that the cost of switching to non-temcor production is very high, these factors constitute a disadvantage for export to the US market.
On the other hand, prices in the local market in Romania have started to increase as expected. Currently the price of rebar in the local Romanian market is at $800/mt, ex-works. It is heard that trading firms are in the market for imports, though their reluctance to purchase has attracted attention. In another Eastern European country, Bulgaria, the prices announced for February shipments are significantly below the market levels. Currently, the price level of $730/mt ex-works excluding VAT in the local Bulgarian market is substantially below the average level in Europe.
Except for a few markets in southern and Eastern Europe, prices are rising continuously. However, end-user demand is quite low. As in Eastern Europe, seasonal influences have scaled down demand in southern Europe, but in this latter region there is the additional factor of the low number of new projects. As a result, demand is not expected to increase in the south of Europe in the near future. However, as the winter conditions come to an end, expectations for Eastern Europe will become more positive.
There has been a slowdown in sales to the US and UAE of the Turkish producers, who are pretty important players for the European market. However, the Turkish producers have been supporting the overall Mediterranean with the help of their sales to alternative markets, thus keeping the prices up.