Turkish mills continue to have difficulties on the longs export side given the lack of demand to which geopolitical tensions have contributed. Mills expect to find it difficult to sell rebar to Yemen, their second-largest outlet, after the country’s decision to declare war on Israel. In addition, Turkish producers have attempted to increase their export prices due to rising scrap prices and still high production costs. However, it will be hard to achieve the new higher levels due to the more competitive offers from North Africa. Currently, Turkish mills are looking for sales destinations and Europe is still interested, but its bids are lower than the mills’ targets. As a result, Turkey is aiming to sell to African counties as well as to Latin America.
Currently, ex-Turkey rebar offers are standing at $560-570/mt FOB for November shipments, versus $550/mt FOB a week earlier, following the price increase in the most recent import scrap deal. The main problem is to find a destination which would accept the above levels. Sources report that a few European buyers' counter-bids are at $540-545/mt FOB, which is very difficult to achieve under the current market conditions. No fresh rebar sale has heard so far.
In the local Turkish rebar market, most mills in the Izmir and Marmara regions are offering their prices at $555-565/mt ex-works, versus $545-570/mt ex-works, including Icdas A.S, while sources report the workable rebar price in the Izmir region is at around $550/mt ex-works for serious buyers and short payment terms. In addition, Kardemir succeeded in selling in around 35,000 mt of rebar at $559/mt ex-works earlier today. Most buyers were attracted by the advantageous payment terms offered by Kardemir and restocked material considering that rebar prices may increase due to the relatively positive sentiment in the import scrap segment.
In the wire rod segment, Turkish official wire rod export offers are now at $570-580/mt, rising by $10/mt week on wee, for November shipments. In the Turkish domestic market, workable wire rod prices vary at $565-585/mt ex-works, while a few mills are offering slightly higher levels.