As expected, Turkish longs producers have not had much choice but to react to the nosedive seen in the import scrap segment. While over the past week HMS I/II 80:20 scrap prices have lost $23/mt and around $60/mt since early April, the pressure on finished steel prices has increased tremendously. However, for now, the decline in export prices has been a little less than in the domestic market. In addition, the controlled supply of rebar in the market through lower utilization rates has also prevented a sharper price fall in the longs segment.
Currently, ex-Turkey rebar offers vary at $540-550/mt FOB for May shipment, versus $550-570/mt FOB a week ago. According to sources, Romanian buyers are active lately following the relatively lower rebar export prices seen recently. News of a sale of a total of around 40,000 mt of rebar to Romania has circulated in the market, reported to have been closed at $540-550/mt FOB in the second half of April.
In the Turkish domestic rebar market, official offers and workable prices have settled at $540-560/mt, down by $15-35/mt depending on the region. In the Izmir and Marmara regions, the levels are at $535-545/mt ex-works, also down by $15/mt. According to sources, around 30,000-35,000 mt of rebar were sold at $535/mt ex-works in the Iskenderun region earlier this week, though some sources said the mentioned tonnage seems a bit high under the current market conditions and given the instability of the economy. In addition, an Iskenderun-based mill has offered its rebar at around $550/mt ex-works, down by $15/mt week on week, for an extended delivery period, based on the current exchange rate of $1 = TRY 38.32. Another mill is also offering an official rebar price at $555/mt ex-works today. According to sources, the latest workable rebar price in this region stands at around $538/mt ex-works, also down by $12/mt week on week at the same exchange rate, for cash payment only.
In the wire rod segment, most Turkish mills have also cut their offers, by $15/mt to $550-560/mt FOB, for May shipment. In addition, workable Turkish domestic wire rod prices vary at $545-570/mt, versus $560-585/mt ex-works a week earlier.