Turkish longs producers are still going through difficult times due to ongoing currency fluctuations and sluggish international demand. A few mills have already stopped their production, while some other mills are already operating at reduced capacity utilization. As a result, the general sentiment in the longs market is pessimistic. In the Turkish domestic rebar market, most local buyers are taking their time before concluding new purchases and are also waiting for the Turkish Central Bank’s interest rate decision due on Thursday, July 20. Some people believe it will further increase interest rates and that, if so, the Turkish lira may depreciate further against the US dollar.
Currently, ex-Turkey rebar offers are standing at $575-580/mt FOB for August shipments, versus $585-595/mt FOB a week ago. No fresh rebar sales have been heard so far.
In the Turkish domestic rebar market, following Icdas’ sharp price cut, the general rebar price range varies at $590-600/mt ex-works, versus $580-620/mt ex-works one week earlier. Sources report even $570/mt ex-works and slightly below is on the table in the Izmir region, but this has not been confirmed by the time of publication. “It might be a speculative move in the downward pricing trend. It has not been confirmed by the supplier,” one source mentioned. Most local traders are attempting to generate cash for their credit payments and are monitoring the import scrap and billet price trends in order to see when prices have hit bottom. Although the recent VAT increase is putting pressure on local trading activities, it seems that the principal problem is finding customers who are solid financially. The main reason is that it is risky to sell to a new customer under the current unclear financial situation in Turkey.
In the wire rod segment, a few mills are offering their products at $590/mt FOB for August shipments, versus $590-605/mt FOB last week. Slightly lower prices are available for serious buyers depending on the customer and the region. In the local Turkish wire rod market, the general price range varies at $593-640/mt ex-works, versus $600-650/mt a week ago. Kardemir has kept its 6-27 mm SAE 1008-1010 grade wire rod price at $600/mt ex-works so far.