Posted on 11 Oct 2019
Some Turkish mills are observed to have increased their rebar quotes, despite there being no improvement in demand in either the local or export market.
Rebar quotes, which stood at $405-415/tonne fob Turkey actual weight last week, are seen to have risen to $405-420/t fob this week. This comes after some mills raised offers on the back of costlier scrap, but other producers have maintained prices. Demand has, however, not showed improvement and buyers – unconvinced of the need for price increases – are bidding at much lower levels.
A Turkish producer tells Kallanish: “We have seen a rise by $7/t on-week in scrap prices but have been unable to reflect this in our rebar quotes. Demand is very low – our global customers have increased the pressure on prices. There is almost no bid above $400/t fob actual weight: they vary between $390-400/t fob.”
Buyers in export markets have increased pressure on prices due to the depreciation of the lira and recent political developments in Turkey. On the other hand, these developments are putting Turkish banks and traders under pressure, thus negatively affecting trading activities and increasing financial costs.
Since Turkish mills have already fulfilled their EU rebar quota, they will not be able to sell until April 2020. Even after April 2020, their sales will remain limited, with only a 30% share from “other countries” quota. The next quota period for Turkey will start on 1 July 2020. Russia and Ukraine, which have 99,000t and 45,000t of EU rebar quota remaining respectively, are expected to be active in the EU market.
In the US market, although there have been small-quantity sales in previous weeks, US buyers have backed off due to uncertainty surrounding increasing tensions between Turkey and the USA this week. Turkish producers were expecting to see decreases in Section 232 duties, but will be left disappointed by this tension.
Yemen and Israel, which are Turkey’s traditional rebar markets, seem to be active in rebar inquiries this week, Kallanish observes.
