Posted on 15 Nov 2019
Turkish rebar producers have increased their quotes this week amid a recovery in domestic and export demand. Government projects, especially, are said to be driving domestic rebar demand.
Demand from target export destinations has also improved compared to previous weeks. As a result, price offers that stood at $415-425/tonne fob last week are seen to have increased to $420-430/t fob actual weight. Higher offers, such as $435/t fob actual weight, are also available from some Turkish mills, Kallanish notes.
Despite the new, higher offers, deals have been concluded at lower levels to regular customers. A Turkish mill has sold approximately 60,000 tonnes of rebar to its regular customers in Yemen at $417/t fob Turkey actual weight. Israeli customers have bought Turkish rebar at almost the same levels. Also, South American markets, such as Peru and Haiti, have concluded deals at similar levels.
A Turkish mill is heard to have concluded a 15,000t rebar sale to North America, despite the 25% Section 232 duty, with an option to increase the quantity to 25,000t. The base price is heard to have been at $420/t fob, although the actual price is yet to be confirmed.
Another mill is heard to have concluded a rebar sale of over 40,000t to Australia; however, the price is yet to be confirmed.
Containerised sales in small tonnages to the African market are occurring mostly at $420-425/t fob actual weight.
While no recent Turkish rebar sales were heard to the Asian market, Asian buyers seem to be quieter this week. The latest deal in the region was concluded by Qatar at $420/t cfr Singapore theoretical weight at the end of last week.
A Turkish mill tells Kallanish: “Yes, we have sold improved tonnages this week. We see better demand both in the local and export markets. I think finally our customers are convinced of our increased production costs. But the most important thing now is to ensure the continuity of these sales. We are not 100% sure of it for the moment.”
Turkish mills no longer seem willing to conclude sales at below $420/t fob Turkey as they expect to see increased bids from their customers.
