The market sentiment for Turkish longs exports has remained unfavourable and demand has not improved, even after the recent holiday. Moreover, the volume of domestic rebar sales is also unsatisfactory and non-supportive for the mills, partially due to the falling currency. Some local traders are unwilling to restock and are aiming to generate cash for their credit payments. The weaker lira supports the downward price movements by Turkish mills for their exports: their offers have fallen over the past two weeks and additional discounts are also applicable.
Ex-Turkey rebar prices have come to $600-610/mt FOB for late July and August, down $15-20/mt over the past two weeks. However, even the $600/mt FOB level is difficult to achieve under the current international market conditions and tough competition. The MENA region remains quiet in terms of buying and in the EU, and, despite the new quota period, Turkey still finds it hard to compete against Asia, the GCC and North Africa. "Egyptian producers are applying aggressive pricing policies, which hamper possible rebar sales from Turkey. Moreover, China is also becoming aggressive on exports and is dominating possible rebar sales to Far Eastern countries,” one producer told SteelOrbis. According to sources, ex-Egypt longs are now available at $560-575/mt FOB, while Algeria is offering at $580/mt FOB.
In the local Turkish market, the general rebar price range varies at TRY 19,200-19,500/mt($623-633/mt) ex-works with the exchange rate at $1 = TRY 26.10, versus TRY 18,050/mt ($648/mt) ex-works with the exchange rate at $1=TRY 23.60 before the holiday. In addition, one Iskenderun-based mill is offering rebar at TRY 18,500/mt (601/mt) ex-works versus TRY 17,000/mt ($610/mt) ex-works with the exchange rate at $1=TRY 23,60. Sources say that $615/mt ex-works is on the table in the Izmir region, versus $630/mt ex-works two weeks ago. Most local buyers are pessimistic and are exerting pressure for further discounts when the negative sentiment in the import scrap is taken into account.
In the wire rod segment, ex-Turkey wire rod offers are at around $615-620/mt FOB for late July-August shipment, versus $635-640/mt FOB seen last week. In the Turkish domestic wire rod market, the general range varies at $615-670/mt ex-works. The higher end seems difficult to achieve for now. Moreover, Kardemir has issued its 6-27 mm SAE 1008-1010 grade wire rod price at $625/mt ex-works today, down $20/mt. A few wire rod buyers are evaluating possible import wire rod offers and are exerting pressure for additional discounts. In the Turkish domestic wire rod market, the general range varies at $615-670/mt ex-works versus $645-670/mt ex-works two weeks earlier. The higher end seems difficult to achive for now.