Global rebar prices have remained stable in most major regions of the world since the beginning of July. The market stagnation is due to the slowdown in demand for steel.
At the same time, the Chinese market is witnessing a decline in demand. Rebar prices in Turkey remained stable at US$575-580 per ton FOB during the period July 1-19. Overall, the market has remained stagnant since mid-May, with quotes neither exceeding $580 per tonne nor falling below $570 per tonne.
Turkish rebar prices remained stable for a long time amid weak domestic and export demand. At the same time, the price of scrap is maintained at levels that do not allow for a reduction in rebar prices despite the lack of demand. On the other hand, this situation restricts buyers who could become more demanding if rebar prices decline. Although the market is pushing for discounts on rebar, producers cannot do so, because high scrap costs would lead to unprofitability.
Demand from European consumers continues to slow amid the holiday season. However, Romania and Bulgaria are showing some interest in Turkish rebar. In addition, Egyptian and Algerian producers entered the European market with better offers, leading to increased competition.
