A slowdown in sales to the Middle East and North Africa (Mena) region combined with poor demand to push Turkish rebar export prices down by $10 per tonne for May production.
Turkish rebar exporters have been struggling to get orders from their customers in the Mena region due to an oversupply of material.
Consumers in Saudi Arabia, Lebanon and the UAE have been inundated with rebar and must use their existing inventories before re-entering the Turkish market to replenish their stocks.
Small parcels of rebar have been sold at $655-670 per tonne fob main Turkish port, down from $665-680 fob previously, according to Turkish market participants.
“The market is silent. Sales have been made at $655-660 fob but only for small tonnages,” a trader in Istanbul said.
“My expectation is that the price will reach $650 fob levels, and this should force ferrous scrap prices for HMS 1&2 (80:20) to $440,” he added.
Low demand in the export market has forced Turkish producers to direct their tonnages to the domestic market, where there is vibrant demand from the construction sector.
“The domestic market is steady,” a second trader confirmed. “The Middle East has slowed down sales because they have too much rebar in the market.”