Turkish mills are still struggling with the silent demand in the international market even though European buyers have returned from their holidays. The main constraints are the higher freight rates and low scrap prices. In addition, the lull in the export segment has caused buyers to believe that Turkish longs export prices have not hit bottom levels yet.
Turkish rebar offers are currently standing at $670-680/mt FOB for October shipment versus $675-690/mt FOB last week. Sources report that an ex-Turkey rebar deal was concluded to Singapore at $720/mt CFR on theoretical weight basis last week. “This price level equals around $670/mt FOB on actual weight basis, which seems a bit high for this market,” a source has mentioned.
In the local Turkish rebar market, most mills are trying to maintain their rebar list prices unchanged and are offering aggressive pricing for serious buyers only. Most sellers in the Izmir and Marmara regions are offering rebar at $655-680/mt ex-works for now. Sources report only small-tonnage rebar lots were traded in the Marmara region at $660/mt ex-works earlier this week. However, over 10,000 mt of rebar have been sold at around $655/mt ex-works in the Izmir region since the beginning of this week.
In the wire rod segment, a few mills are still offering wire rod at $775-780/mt FOB, versus $790/mt FOB a week earlier. No fresh wire rod sales have been heard for now.