Turkish mills are struggling to generate long steel sales in both the local and export markets. Most international buyers do not accept higher export prices in line with increased import scrap prices and are exerting pressure for further discounts.
A few inquiries have been heard from the Balkans, though buyers there are also taking their time and waiting as they believe Turkish long steel export prices may soften as the year is about to end, while they are also being cautious due to the upcoming CBAM and related uncertainties. In the local market, most buyers are facing financial difficulties due to the ongoing depreciation of the Turkish lira against the US dollar, with the exchange rate about to hit $1 = TRY 42 ahead of the Turkish Central Bank's interest rate decision due tomorrow, October 23. As a result, the workable price levels for rebar in the domestic market have lost at least $5-10/mt over the past week.
Currently, ex-Turkey rebar prices vary at $550-555/mt FOB, down by $5/mt on the higher end for November shipments over the past week. Still, the level of $545/mt FOB for rebar is considered workable, though little activity is seen in the overseas markets.
In the Turkish domestic rebar market, the official offers stand at $545-560/mt ex-works, down by $15/mt on the higher end over the past week. Sources report that the general workable rebar prices in the Marmara and Izmir regions have also fallen, by $5/mt on the higher end to $545-555/mt ex-works amid sluggish demand. The lower end is represented by the Izmir region, while the upper end is for the Marmara region.
An Iskenderun region-based mill has issued its official rebar price on October 22 at around $562/mt ex-works for an extended delivery period, with only a $2/mt decrease on US dollar basis week on week. According to sources, the latest workable rebar price in this region stands at around $540-545/mt ex-works, down by $10/mt over the past week amid the ongoing currency fluctuations and sluggish demand.
Most local buyers are only purchasing in line with their daily needs and are maintaining a wait-and-see stance so far.
In the wire rod segment, export prices have settled at $555/mt FOB for November shipments, versus $555-560/mt FOB last week. Locally, workable wire rod prices are still standing at $550-560/mt ex-works, while sources report that the higher end seem somewhat difficult to achieve under the current market conditions.
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