Turkish rebar producers are still facing challenges with international buyers exerting pressure for further discounts amid weaker import scrap prices, while even local buyers are asking for additional discounts against the backdrop of rapid currency fluctuations and the silence in the market ahead of the Turkish elections on May 14. "Most local buyers are in a pessimistic mood and are waiting for the results of the elections, and they are refraining from destocking material and are purchasing only in line with their daily needs," one source mentioned. Sources report that a few inquiries are heard from the Balkans, eastern Europe and Israel, while actual sales have not been heard of yet.
Currently, ex-Turkey rebar offers vary at $635-650/mt FOB, versus $670-680/mt FOB for May shipment a week ago. However, the higher end seems somewhat difficult to achieve at present. In addition, 5,000 mt of a mixed cargo of rebar and wire rod was traded earlier this week at $650/mt and $655/mt FOB respectively to Israel for May shipment, SteelOrbis has heard.
In the Turkish domestic rebar market, official rebar prices vary at $650-660/mt ex-works, versus $690/mt ex-works a week ago against the backdrop of the negative sentiment in the import scrap and billet segments and also given the rapid depreciation of the Turkish lira against the US dollar. Sales of small tonnages of rebar at $650/mt ex-works were rumored in the Izmir and Marmara regions earlier this week. A few Turkish mills are converting their rebar pricing into Turkish liras in order to offset the currency fluctuations.
In the wire rod segment, a few mills are offering wire rod at $650-655/mt, versus $680-690/mt FOB previously, for May shipment. In the local Turkish market, general wire rod prices vary at $665-700/mt ex-works, versus $690-730/mt ex-works, while they are also expected to decline in the short term.