Turkish rebar producers have been going through difficult times for a long time now, while recent increases in energy prices have further hampered them in terms of possible rebar export sales, even to regular destinations. Some Turkish mills are aiming to add at least $10/mt to their existing export offers in order to compensate for the recent energy price hike. However, international buyers do not seem ready to accept any price hikes for now. On the other hand, North African suppliers still seem to hold the advantage with their relatively low production costs.
Ex-Turkey rebar offers are standing at $570-580/mt FOB for October shipments, while even $565/mt FOB is on the table depending on the region and the tonnage, unchanged from last week. No fresh rebar sale has been heard for now. " Even if a rebar deal is concluded, it may be at $565-580/mt FOB. International buyers are not ready to pay an additional $10/mt under the current market conditions. According to the Turkish Statistical Institute (TUIK), in the first eight months of this year the value of Turkey's iron and steel exports was down by 47.4 percent to $5.77 billion, while the value of its exports of articles of iron or steel fell by 6.2 percent to $6.54 billion, both year on year.
In the local rebar market, most Izmir-based and Marmara-based mills are offering rebar at $585-595/mt ex-works, including Icdas A.S, rising by $5/mt over the past week. Due to their ongoing loan payments, most buyers are refraining from restocking and from making daily purchases. One Iskenderun-based mill has issued its rebar price at TRY 19,400/mt ex-works, around $585/mt ex-works with a $1 = TRY 27.57 exchange rate.
In the wire rod segment, Turkish official wire rod offers have also remained stable, at $580-590/mt FOB, for October shipments. In the local Turkish market, the general wire rod price range stands at $585-615/mt, versus $578-615/mt ex-works a week ago, depending on the region. The higher end still seems a bit high for the market and the workable wire rod price level is closer to $585/mt ex-works, SteelOrbis has heard.