The Turkish export rebar steel price took a sharp tumble on Friday as a major Turkish exporter took control of this month’s sales into the UAE by dropping its price far below expected levels.
A UAE trader said late Thursday that a Turkish mill had sold 30,000 mt of rebar between $350-$353/mt CFR UAE theoretical weight ($343-$346/mt FOB actual weight, given freight at $20/mt and an adjustment of 4% of weight) to between two and four separate buyers, followed by a further 20,000 mt on Friday morning at $350/mt CFR theoretical weight ($343/mt FOB actual). “No one else got bookings,” he said.
This fills the expected demand for Turkish material in the UAE this month, as the upcoming Eid festival next week and a slower UAE economy was predicted to cut demand in half from the recent average 100,000-120,000 mt per month.
Sources in the market were skeptical of the repeatable nature of the trades, given that they represented a $20/mt drop in FOB pricing. A Turkish exporter said the offer level was still $370/mt, while traders pegged value more likely at $350/mt FOB.
A US trader confirmed that he had heard UAE counters at $350/mt CFR theoretical after initial offers at the beginning of this week at $370/mt CFR.
“All prices are going down sharply. We will see a further decrease after Eid holiday,” said a Turkish trader.
A number of other Turkish exporters scoffed at the prices of the trades. And with most of the Turkey market shutting down for the Eid festival next week, sources said it seems unlikely that anyone will be in a hurry to follow up with deals at the latest prices.
Platts assessed Turkish export rebar at $350/mt FOB on Friday, a fall of $12.50/mt compared with Thursday.
Zhejiang Yaang Pipe Industry Co., Limited (www.yaang.com)