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
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
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."