Turkey’s longs exporters, who are still failing to see much improvement in demand in most overseas markets, have increased their export offers, despite the downtrend in the import scrap market. The main reason is the temporary reduction in domestic production due to the problematic situation at one of the mills, but also the possible increase in sales activity in some export destinations. In particular, according to sources, the large producer in China has announced a shutdown of its blast furnace, marking the halt of steel production at the plant. The company will continue mining and logistics operations, but there may be some additional sales opportunities for Turkey in Latin America. In addition, Turkish mills have been eyeing sales to the Balkan region, from where they receive small inquiries, partly owing to shifts in the regional trade flow.
Currently, ex-Turkey rebar prices vary at $590-595/mt FOB for October-early November shipments, up $5/mt week on week. Sources report a fresh rebar sale of 8,000 mt to Albania or Kosovo this week within the mentioned range. More rebar sales may follow when the recent inquiries are taken into account. Turkish domestic rebar prices have hit $600-620/mt ex-works, rising by $10/mt over the past week. The main reason for the difference between local and export rebar prices is that most international buyers are taking their time to restock in the rising market, while local Turkish rebar prices mainly rise due to limited supply and the ongoing currency fluctuations in Turkey. One mill in the southeast of the Marmara region is rumored to be filing for bankruptcy protection, though no official announcement has been released yet. In addition, according to sources, a large producer in the Marmara region has stopped production due to reported problems with radioactivity. The company is currently tackling the issue and is carrying out an investigation, while market players expect the whole issue will take at least a month to resolve.
In the wire rod segment, most Turkish mills have been offering at $600-605/mt FOB for October-early November shipments, up by $5/mt over the past week. In addition, Turkish domestic wire rod prices vary at $605-615/mt, versus $585-605/mt ex-works a week ago. Lately, an Iskenderun region-based mill issued its wire rod price at $610/mt ex-works, indicating a rise of $10/mt over the past week.
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