Turkish domestic rebar market has made a tight start this week. US Dollar basis rebar prices were strong. However, trading firms were reluctant to make huge tonnage purchases due to the continuous fluctuation in exchange rate. On the other hand, after Turkish mill Kardemir concluded above 30,000 mt sales on August 9, purchases have started to be concluded in the market. Prices in Turkey's Marmara region rose to $615-620/mt ex-works, excluding VAT. In addition, prices rose to TRY 930-940/mt ($625-632/mt+VAT) ex-works, including VAT in Payas region. After sales were concluded at TRY 890-900-910/mt (589-596-602/mt+VAT) ex-works, including VAT in Izmir region, producers in Izmir region stopped making offers. Traders' stock levels were very low at the beginning of the week. Domestic rebar market seems to gain a further movement with the rising scrap and billet prices, and the huge purchases concluded by traders begun as of yesterday.
Turkish mills are offering rebars for export at $585/mt FOB and above on actual weight basis to destinations other than the US and Gulf markets. Although the European market is on holiday, Turkish domestic rebar market and Middle East rebar market are providing support for Turkish producers' rebar exports.
The retail price level of imported rebar in the UAE market indicated a slight rise at the beginning of the week. The price level of imported rebar in the UAE market rose to around AED 2,325-2,380/mt ($633-648/mt) delivered to site on a theoretical weight basis for 3- and 5-month deferred payment, excluding VAT with the import offers' pressure. SteelOrbis has heard that the latest Turkish rebar sale was concluded at $610/mt CFR on theoretical weight basis. Turkish producers are trying to raise their prices. After the export tariff application, Chinese origin rebar was not active in the UAE anymore. The UAE retail prices have not indicated an enough rise yet. In addition, big trading firms are showing a great caution against the rapid rise. However, if Qatar and Saudi Arabian markets show an upward trend with the effect of rising raw material and billet prices, the rises in the UAE market may become more easily acceptable.
It is difficult to say that the other GCC (Gulf Cooperation Council) country; Saudi Arabian market is very active. The price level of 8-32 mm rebar in the domestic Saudi Arabian market is at SAR 2,400-2,650/mt ($640-707/mt) delivered to warehouse on theoretical weight basis, including five percent VAT. Saudi Arabian market traditionally slows down in August due to the seasonal and holiday effects. In addition, this market responds slower to the international trends. Saudi Arabian market responded to the keen rises in mid-July seen in Mediterranean and Black Sea during June. Therefore, the market players in Saudi Arabia expect the market to respond to the revival seen in late July towards the end of August.
The south European markets entered the holiday with low prices, but positive expectations. Italian producers had targeted a base price of €280/mt ($383/mt) for post-holiday. This is €40-45/mt ($55-62/mt) higher than the level at the beginning of the holiday period. Although the Spanish producers announced a price rise of €15-20/mt ($21-27/mt) in the week before the holiday period, they concluded sales at previous levels. Most Spanish producers are on holiday, but the mills that are active may start to apply the targeted €300/mt base price (12 mm AENOR-certificated rebar €520-525/mt delivered to warehouse) as of August 13.
On the one hand some Middle Eastern markets have recorded a rise. On the other, a rise maybe started in the other markets at any moment. Scrap and billet prices are currently providing support for the market. If the European markets meet the expectations post-holiday, there maybe a better market in Middle East and Mediterranean in late August.