Global rebar markets have continued to be under pressure in recent weeks as Chinese domestic prices have seen a strong downward trend, after a long period of healthy performance.

During the last two weeks, Chinese domestic rebar prices have lost over $40/tonne according to the Kallanish index, putting increasing pressure to the market, already uncertain due to the ongoing problems of Turkish mills. Compared to last year, Chinese rebar prices are at levels similar to those registered at the beginning of November 2017. Nevertheless the downward trend is now accelerating while twelve months ago the market was beginning a rally that would have taken the price to an all-time record at the end of November.

Turkish prices, meanwhile, remain under pressure, as they have been more or less continously since mid-March this year. Last week Turkish export offers witnessed a new fall after the market recovered somewhat during October, supported by the pick-up of scrap values in the country.

Sources in the Turkish market are expecting the softening of rebar prices to continue this week, to rapidly take the level to $500/t fob Turkey. The new negative trend is explained by low demand in Turkey as well as growing competition registered from Iranian mills, increasing their exports of rebar to Turkey to as much as 5,000 tonnes/month since September this year.