Global rebar prices continued to fall last week due to weak market sensitivity
In Turkey, purchases of rebar continue to follow a downward trend in the construction sector due to non-competitive price levels in export markets and weak demand in the Chinese market.
What is the latest situation in rebar in Turkey?
During the week of April 7-14, 2023, Turkey's rebar prices experienced their sixth consecutive week of decline, decreasing by 1.4%. This decrease can be attributed to weak export demand due to low competitiveness of local products, as well as decreased market activity during holidays.
It is expected that Turkish rebar will continue to decrease in the short term due to weak demand in both export and domestic markets. Acceptable export prices for producers are currently at the level of $670/ton.
Market participants claim that Turkish steel producers need to lower their prices to meet export demand
According to market participants, Turkish steel producers need to lower their prices to meet export demand, but the maximum operational level for Turkish rebar is around $660/ton.
The decrease in the Chinese steel market is negatively affecting Turkish steel plants
Chinese exporters are also offering rebar at lower prices, which is posing difficulties for Turkish factories.
Due to the depreciation of the Turkish lira, domestic demand is weak and local traders are stopping their purchases of rebar. It is expected that Turkish rebar will continue to experience a short-term decrease due to weak demand in both export and domestic markets.
In China, rebar prices offers decrease for the second consecutive week due to low demand and high supply
In China, rebar offers decreased for the second consecutive week due to low demand and high supply. Some steel companies have started to reduce production to balance supply and demand. The market is expected to be volatile in May-June and prices are expected to recover in the second half of the year.
In the US, rebar prices remained steady for three consecutive weeks
The rebar prices in the US remained steady at $950-970 per ton for three consecutive weeks, despite strong domestic demand. The construction sector is facing headwinds due to tight budgets and increasing interest rates. Steel prices in the US may also be affected by the volatile scrap market, which has slowed down globally and reduced demand from Turkish consumers.
Poland, Romania, Germany, and Moldova have increased their export of long-rolled products.
Ukrainian steel producers increased their exports of long-rolled products by 46.2% in March 2023 compared to the previous month, with main consumers being Poland, Romania, Germany, and Moldova.
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