Turkish long steel mills are already running at reduced production capacity rates, while international buyers are still on holiday, specifically in the US and Europe. The Turkish producers are still suffering from higher production costs, and are attempting to increase their export prices amid the positive sentiment in the import scrap and billet segments. In the local Turkish rebar market, prices have also moved upwards at the beginning of 2023. Most local buyers are taking their time before concluding new purchases due to the currency fluctuations, liquidity issues and the unclear financial situation in the country.
Currently, ex-Turkey rebar prices vary at $705-710/mt FOB, versus $670-680/mt FOB a week ago, while slightly higher levels are also available only from a few mills, for January shipment. The new quota period in the EU which started on January 1 seems to be different this time as only lower volumes of certain steel products for which quotas were filled in the first weeks of the previous quota periods are waiting for customs clearance, against the backdrop of lower demand in the EU. As a result, regular destinations such as Israel and Yemen are expected to continue being the target markets for Turkish producers.
In the Turkish domestic rebar market, the workable rebar range in the Marmara and Izmir regions are standing at $705-715/mt ex-works, versus $680-695/mt ex-works a week ago. Demand is sluggish due to the rapid currency fluctuations and credit payment issues. Some local buyers believe the rising rebar price trend may slow down due to the lack of demand at short notice and are postponing their purchases for now.
In the wire rod segment, a few mills are testing $720-730/mt FOB, versus $680-690/mt FOB, for January-early February shipment. Trading activity is also slow in this segment.